The tenders for two residential Government Land Sales (GLS) sites—Pine Grove (Parcel A) and Dunman Road—closed on June 2.
The Pine Grove (Parcel A) site received five bids, with a mere S$800 or 0.0001% difference between the highest and second-highest bids.
An 80:20 joint venture between UOL Group (UOL) and Singapore Land Group (SingLand) submitted the top bid of S$671,500,800, which translates to a land rate of S$1,318 per square foot per plot ratio (psf ppr).
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Allgreen Properties (Allgreen) came in with a bid of S$671,500,000. “This must be the closest bid in the history of GLS tenders,” says Leo Kwek, a senior real estate agent at AnjiaSG.
The tender for the Tengah Garden Walk Executive Condominium (EC) site, which closed at the end of May 2021, also saw a narrow margin of just 0.03% between the top two bids.
A joint venture between City Developments Ltd (CDL) and MCL Land submitted the highest bid of S$603.16 psf ppr, while CSC Land came in second with a bid of S$602.99 psf ppr.
Another closely-fought contest was in September 2018, when Evia Real Estate and Gamuda Land won the Anchorvale Crescent Executive Condominium (EC) site by a margin of just S$899. The 548-unit project was launched in March 2020 and has since been fully sold.
Leo Kwek adds, “These close bids reflect developers’ need to quickly replenish their land banks with attractive sites, especially in an area that hasn’t seen a new launch in over 10 years.” The last nearby GLS site was The Serenade@Holland in 2001.
Leo Kwek stated that the Pine Grove Parcel A site will be developed into a residential project with 520 units.
Given its location in the private residential enclave of Mount Sinai Rise, he expects healthy buying demand. Popular nearby primary schools include Henry Park Primary School and Pei Tong Primary School. Surrounding retail and lifestyle amenities include Holland Village, The Clementi Mall, and The Star Vista.
“Given the strong attributes of the site, we expect strong interest from both homebuyers and investors,” Mr. Kwek added.
Leo Kwek noted that there may be an upcoming Cross Island Line MRT station at Sunset Way in Clementi, which is close to Pine Grove.
Based on the price submitted by UOL Group and Singapore Land Group, local real estate agent Leo Kwek estimates that the new project on the Pine Grove (Parcel A) site will be launched at prices between S$2,300 and S$2,400 psf.
Mr. Kwek pointed out that developer interest in the site was strong despite potential future competition from the adjacent GLS site—Pine Grove (Parcel B). This 269,520 sq ft, 99-year leasehold site, currently on the Reserve List, can yield 565 units.
He stated, “Over the past decade, the absence of new large-scale projects in the Ulu Pandan and Pine Grove areas may have led to strong pent-up demand for private housing in the region.”
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