Dairy Farm Road site likely to attract keen bidding

A 99-year leasehold site in Dairy Farm Road launched yesterday under the confirmed list of the Government Land Sales (GLS) programme is expected to see keen interest from developers, market watchers said.

There is also a strong prospect that two reserve list sites – one in Sims Drive and the other in Tampines Avenue 10 – will be triggered for sale, they added.

Collectively, the three sites can yield some 1,880 residential units.

Sites on the confirmed list are launched on schedule while sites on the reserve list that become available for application are triggered for sale only when there is a minimum acceptable bid.

“All three land parcels should find favour with developers, given the improved market sentiment and good absorption of new supply,” said Colliers International’s head of research for Singapore Tricia Song.

JLL Singapore head of research and consultancy Tay Huey Ying posited that the Dairy Farm Road site could even set a benchmark price for GLS land parcels in the Dairy Farm/Bukit Panjang/Hill-view/Bukit Batok locality.

Its proximity to Hillview MRT station and major expressways as well as strong rental demand from expatriates in the area are reasons why the site may prove to be popular with developers, she said.

The last time a residential GLS site was sold in the area was in 2012, to a consortium led by TA Corporation for $616 per sq ft per plot ratio (psf ppr) and developed into The Skywoods.

The current record GLS land rate ($805 psf ppr) in the Bukit Panjang/Hillview/Dairy Farm/Bukit Batok locality is held by the land parcel on which Hillion Residences and Hillion Mall stand. Units in Hillion Residences have commanded average prices of $1,496 psf this year, Ms Tay noted.

Huttons Asia head of research Lee Sze Teck felt that positive market sentiment, developers’ interest in replenishing their land bank, the lack of new supply in the area and other good locational attributes will contribute to keen interest in the GLS site in Dairy Farm Road.

“It may attract up to 10 bidders and a top bid of between $900 and $1,000 psf ppr,” he said.

The Dairy Farm Road plot, which can yield some 500 units, is zoned residential, with commercial use on the first floor that is capped at 4,000 sq m. At least 500 sq m of gross floor area have to be set aside for a childcare centre. With prior written approval, a combination of flats with strata landed houses is allowed.

Ms Song expects the top bid to come in at $880 to $950 psf ppr.

Meanwhile, developers are hungry for executive condominium (EC) sites, as reflected in the 17 bids and record-breaking top bid of $583 psf ppr for the Sumang Walk site early this year.

The EC site in Tampines Avenue 10 could potentially fetch $360 million (or $480 psf ppr), Ms Song said. Mr Lee expected a top bid of up to $600 psf ppr.

Similarly, if the Sims Drive site is triggered for sale, consultants expect it to draw a top bid of up to $1,200 psf ppr. Under Master Plan 2014, it is the last parcel of land zoned for residential development in Sims Avenue, Mr Lee said.

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