Around 2,000 homes for Dairy Farm, Tengah, Bayshore by URA
Urban Redevelopment Authority released three residential properties on Thursday, June 13 for the first half of 2024, under the Government Land Sales (GLS) program.
Three sites are located on Dairy Farm Walk (Dairy Farm Walk), Tengah Garden Avenue (Tengah Garden Avenue) and Bayshore Road.
Three parcels of land are on a 99-year lease and can provide a total of 1,915 housing units.
On the list of confirmed plots are Dairy Farm Walk, Tengah Garden Avenue and Bayshore Road.
Sites listed on the confirmed list are released in accordance with the plan, regardless of demand. On the other hand, sites listed on the reserved list are only offered for tender if the developer makes an acceptable proposal to the government.
The Dairy Farm Walk and Bayshore Road plots are zoned for residential use, while the property at Tengah Garden Avenue is zoned residential and commercial for the first floor.
The prices for land are lower than for previously offered sites in the region. This is because the government expands land availability and developers have to deal with “challenging” circumstances, which include the high cost of construction, the interest rates, and the uniformity of gross floor area (GFA)
Based on the latest definition of the harmonised GFA which is standardised, every stratum will have to be included in GFA. This is governed by the master plan of the site’s plot ratio.
The 21,881.8 square metre (sq m) plot located at Dairy Farm Walk could yield up to 540 units. It can be used for a gross floor area of 45,952 sq m. The maximum height for a building is four to six storeys in the low-rise zone and 75 to 85 metres in the medium-rise zone.
Market watchers also noted that the Dairy Farm Walk site is transforming into a residential area, with new condominiums like The Botany at Dairy Farm and Dairy Farm Residences launching in the vicinity.
The site is ideally positioned to draw a significant number of HDB residents of the Bukit Panjang and Choa Chu Kang Estates who want to improve their homes.
The only development in the same zone is The Botany at Dairy Farm, and added to the list: This is an excellent chance for developers, as potential buyers who did not get on the earlier projects might turn their attention to the new GLS development.
This round is expected to be less in terms of competition due to the fact that developers are becoming more cautious and there are many sites with attractive tenders available.
It is expected that the Dairy Farm Walk site to possibly receive three bids, with the maximum bid of between S$800 and S$850 per square foot per plot ratio (psf ppr).
On the other hand the plot launch at Dairy Farm Walk is not as exciting due to the fact that several private residential developments have already been announced in the area. When bidding on the land developers will be looking at the remaining inventory of launches nearby.
The Botany at Dairy farm that was put for sale in March of last year, has sold 90% of its 386 apartments at an average price of more than S$2,050 for each square foot. The most recent tender on the site is expected to draw two or one bid with the highest price of S$880-$950 per psf, ppr.
Three bidders or two with the highest bid between S$900-$1,000 per square foot per person.
The Dairy Walk project is anticipated to be completed within 60 months.
The URA estimates that the land parcel could yield up to 860 residential units. The building height limit of 60 meters.
The demand for integrated mixed-use sites like Tengah Gardens Avenue is typically high and it is predicted that the site won’t draw more than three bidders and the highest bid could be between S$800 and S$850 per square foot per pound.
It is anticipated that developers to be keen on the site due to the rising value of property in the area, accompanied by an improvement in the transport network.
The site to attract three or four bids that range between S$900 and S$980 per bid.
Despite alluring possibilities, the Tengah area remains a relatively undiscovered area for buyers. Developers would need to balance demand drivers and supply influx from the surrounding new developments, while also gaining a first-mover advantage.
The highest bid price for the plot is expected to range from S$850 to S$950 per square foot.
The project’s completion time is 66 months. This is subject to the submission of the first application for regulatory approval by December 31 2025.
The 10,493.9 sq m area at Bayshore Road can potentially yield 515 units. It has an GFA of 44,075 sq m and a maximum building height of 101-105 m. The project’s completion time also stands at 60 months.
The Bayshore Road site will be the first private development within the estate in keeping with the previous two Build-To-Order projects to be launched in October.
In addition, the location is located close to the Bayshore MRT station and directly accessible to Marina Bay, the Central Business District and Orchard Road. The property is expected to attract buyers from east, including HDB upgraders as well as those who reside in nearby landed homes looking to downsize into a condo unit without having to move too far.
Developers are expected to put this site up for sale because of the demand for houses in the area. He pointed out that the last GLS site awarded to the area was January 2016 and was hotly contest by bidders of eight. The site was ultimately awarded at S$858 per square foot per meter.
Site could have a maximum bid of S$900 to S$950 per square foot per person.
The property is not likely to be offered for sale in the near future because of the upcoming launch of the H1 GLS program and the massive quantity of housing units on the market. The site may be added onto the approved list during the second quarter of the year, provided that developers don’t apply for the site.
The GLS H2 2013 programme has the highest confirmed list supply of units in the most recent tender. To meet the rising demand, the government raised the number of confirmed listings of housing for private households in the GLS program to 5,450 units by H1 2024 from 4,090 units in H1 2023, and 5,160 units in H2 2023.
The Dairy Walk and Tengah Gardens Avenue tenders will close on January 14th, 2025 at 12pm.
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