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SingHaiyi submits highest bid of $1.284 bil for Dunman Road GLS site

/ EdgeProp Singapore |

June 2, 2022 8:10 PM SGT

Location map of Dunman Road site (Credit: URA)

SINGAPORE (EDGEPROP) - While the Pine Grove (Parcel A) tender drew five bids, the government land sale (GLS) site for Dunman Road saw just two bids. The top bid of $1.284 billion or $1,350 psf per plot ratio (psf ppr) came from SingHaiyi Group while the second place went to a consortium that included City Developments Ltd (CDL), Hong Leong Group and TID with a bid of $1.067 billion ($1,122 psf ppr).

“Today’s tender closing shows that developers remain cautious in acquiring residential sites, especially larger ones, as seen in the lacklustre tender participation,” says Ong Teck Hui, JLL senior director of research & consultancy. “This is despite the low unsold inventory and the recent successful launches of Piccadilly Grand and Liv@MB.”

The top bid of $1,350 psf ppr was 20.3% higher than the lower bid at $1,122 psf ppr, which shows a restrained attempt to compete by the lower bidder. “This tender tells us that large billion-dollar sites are not in demand in the current market as they are risky in terms of the capital outlay as well as in marketing more than 1,000 units within the five-year deadline to qualify for ABSD [additional buyer’s stamp duty] remission,” adds Ong.

The percentage difference between these two bids is the widest for a residential GLS tender since the tender for the GLS site at Jalan Jurong Kechil which closed in September 2018, says Nicholas Mak, ERA Realty Network head of research & consultancy. In the Jalan Jurong Kechil GLS tender, the difference between the top and second highest bid was 31.3%, Mak adds.

The Dunman Road site could be developed into a new residential project with about 1,040 units.

Map and overview of the Dunman Road site (Source: EdgeProp LandLens)

The price of $1,350 psf ppr submitted by SingHaiyi is about 4% higher than the $1,302 psf ppr paid by CDL for the GLS site at Jalan Tembusu, also in District 15, in January this year. The Jalan Tembusu site, which could yield about 640 units, had drawn eight bids at the close of its tender.

There are two sizeable developments in the pipeline for launch in District 15, namely the Jalan Tembusu GLS site and the freehold Thiam Siew Avenue site purchased en bloc by a joint venture between Hoi Hup Realty and Sunway Developments last November. The site can potentially be developed into a new 820-unit condominium project. (See potential condos with en bloc calculator)

According to Tricia Song, CBRE head of research for Southeast Asia, the low number of bids for the site despite its attractive locational attributes reflects “its large size and competition” from the new projects at Jalan Tembusu and Thiam Siew Avenue.

Song estimates that the new residential development at Dunman Road could be launched at $2,200 to $2,300 psf ppr.

Check out the latest listings near Dunman Road, Thiam Siew Avenue

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