SINGAPORE (EDGEPROP) – At the close of the tender for two government land sale (GLS) sites this evening, there were seven bids for the residential site at Dairy Farm Walk and nine bids for the executive condo (EC) site at Bukit Batok West Avenue 8.
For the Dairy Farm Walk GLS site, at the top of the heap is Sim Lian Group’s entities, Sim Lian Land and Sim Lian Development. The group submitted a bid of $347 million, which works out to $980 psf per plot ratio (psf ppr).
The second highest bid of $970 psf ppr came from a joint venture between United Engineers and Soilbuild Group, which is just 1% below the top bid, points out Nicholas Mak, head of research at ERA Realty.
With the land rate of $980 psf ppr, the new condo project at the Dairy Farm Walk residential site could be launched at $1,880 to $1,980 psf, Mak estimates.
The 168,597 sq ft, 99-year leasehold site, has the potential to yield about 350 to 400 residential units.
Sim Lian Group has been an active participant in the last few government land sale (GLS) tenders, but was unsuccessful until now. The group’s 2,203-unit Treasure at Tampines private condo (a redevelopment of the former Tampines Court collective sale site) was fully sold as of February 13, 2022. With that, SIm Lian’s development pipeline was completely depleted. Notably, Treasure at Tampines was considered the biggest private condominium project launched in Singapore to date, and it was fully sold within three years of its launch in February 2019.
Second highest bidder, United Engineers Ltd, is the developer of the 460-unit Dairy Farm Residences, located just one street away from the Dairy Farm Walk GLS site. Launched in late 2018, the 99-year leasehold condo is over 95% sold with average price at $1,612 psf psf, based on caveats lodged to date.