UOL Group, Singapore Land Group, Kheng Leong top nine bids for Dorset Road GLS site with $1,338 psf ppr offer
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UOL Group, Singapore Land Group (SingLand), and Kheng Leong have submitted the top bid of $1,338 psf per plot ratio (ppr), or $ 524.3 million, for a government land sale (GLS) site at Dorset Road, which closed on Oct 9.
According to a statement issued by the developers after the close of the tender. The project is a 60:20:20 joint venture (JV) between UOL, SingLand, and Kheng Leong. If the site is awarded to the JV, they will develop it into a 428-unit project comprising two 27-storey residential towers.
In the statement, Shirley Ng, UOL Chief Investment and Asset Officer, adds that the site's central location and the fact that it is the only site that sits within the fringe of CCR region from GLS Confirmed List sites for 2025 were some of the attributes which made the site appealing. Other factors included its proximity to Farrer Park MRT, and that it is within 1km to St Joseph Institution Junior and Hong Wen School.
The tender for the residential site attracted nine bids. The second-highest bid was submitted by a consortium comprising ABR Holdings, LWH Holdings, Macly Group, Roxy-Pacific Holdings and Wee Hur Holdings, who put in a $518.88 million ($1,324 psf ppr) bid. They were followed by Hoi Hup, which submitted a $515.18 million ($1,315 psf ppr) bid.
The strong turnout from developers for this GLS site indicates improved developer confidence, supported by the healthy sales results of recent new launches and the site’s appealing locational features, says Marcus Chu, CEO of ERA Singapore.
The bidding activity also suggests that developers are confident that demand for new city-fringe private residential projects will persist, says Mohan Sandrasegeran, head of research and data analytics at SRI.
However, developers may also be adopting a cautious approach in their bid price strategy, given that the price difference between the top three bids is around 2%, says Mark Yip, CEO of Huttons Asia. Developers will want to strike a balance between maintaining affordability for buyers while lowering their risks in the event of possible government intervention in the property market, he says.
The site is located in the Farrer Park neighbourhood in the Rest of Central Region (RCR). It is within walking distance of Farrer Park MRT station on the North-East Line. Nearby amenities include City Square Mall, Piccadilly Galleria, and Mustafa Centre. Meanwhile, schools in the vicinity are Farrer Park Primary School, St Joseph’s Institution Junior, and Hong Wen School.
The most recent new launch in the neighbourhood was the 407-unit Piccadilly Grand, which was jointly developed by City Developments (CDL) and MCL Land. The project was launched in May 2022 and was fully sold by December 2023, recording an average sales price of $2,114 psf.
In July this year, a 1,087 sq ft, three-bedroom unit at Piccadilly Grand changed hands in a sub-sale for $2.7 million ($2,484 psf), based on caveats lodged. The unit had been purchased from the developer in May 2022 for $2.292 million ($2,108 psf), reflecting a price gain of 17.8% in just three years.
The government has not released a sizable residential GLS site in the Farrer Park area in close to four years. The last plot was on Northumberland Road, which has been developed into Piccadilly Grand. According to Chu, this scarcity indicates a clear opportunity for developers to capitalise on pent-up demand for mid- or large-sized residential projects.
This year, about 12 new projects are expected to launch in the RCR, which will inject about 4,800 units into the market. But the pipeline will shrink to just three projects next year with fewer than 2,100 units, including the development of the Dorset Road site. This supply situation will likely support condo prices in the RCR, says Yip. He adds that the recent strong performance in the new launch market has added urgency for some developers to replenish their development land banks.
The new project could launch at prices from about $2,500 psf. (Map: EdgeProp Singapore)
Recent projects by UOL Group and SingLand have benefitted from strong buying sentiment in the new launch market. The two developers are part of a consortium, with CapitaLand Development and Kheng Leong Co., which unveiled the 666-unit Skye at Holland on Sept 26. The project in Holland Village is 3.2 times oversubscribed after developers collected more than 2,150 cheques ahead of the project sales launch on Oct 11. Prices at Skye at Holland are expected to start from $2,598 psf.
UOL Group and Singland have also sold more than 67% of the units at UPPERHOUSE at Orchard Boulevard since the 301-unit ultra-luxury project launched in July. The developers are also behind the 1,193-unit Parktown Residence, which launched in February and is more than 90% sold.
Other new project launches in the RCR have also garnered strong market response at launch, namely The Orie, One Marina Gardens, Promenade Peak, Lyndenwoods, and Bloomsbury Residences. This has reinforced the RCR’s position as a key growth segment to bridge private housing affordability and accessibility between the Core Central Region (CCR) and the Outside Central Region (OCR), says Sandrasegeran.
ERA estimates that the upcoming development on Dorset Road could see sales prices range from $2,650 to $2,750 psf.
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