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UOL and SingLand JV submit highest bid of $1,318 psf ppr for Pine Grove Parcel A

/ EdgeProp Singapore |

June 2, 2022 7:46 PM SGT

Location map of Pine Grove (Parcel A) site (Credit: URA)

SINGAPORE (EDGEPROP) - The tender for two residential government land sale (GLS) sites — Pine Grove (Parcel A) and Dunman Road — closed today.

The site at Pine Grove (Parcel A) drew five bids, with a difference of just $800 or 0.0001% between the top and second-highest bids.

The top bid of $671,500,800 was submitted by an 80:20 joint venture between UOL Group and Singapore Land Group (SingLand), which translates to a land rate of $1,318 psf per plot ratio (psf ppr).

Source: URA, developers

Allgreen’s bid was $671,500,000. “This has to be the closest fight in GLS tenders ever,” says Lee Sze Teck, senior director (research), Huttons Asia.

The Tengah Garden Walk EC site which closed at the end of May 2021 also saw a narrow gap of just 0.03% between the top two bids.

The City Developments (CDL) and MCL Land joint venture submitted the highest bid of $603.16 psf ppr, with CSC Land Group in second place with a bid of $602.99 psf ppr.

Another close fight was in September 2018, when Evia Real Estate and Gamuda Land won the EC site at Anchorvale Crescent for a grand total of $899. The project was launched as the 548-unit Ola in March 2020 and fully sold to date.

“The close bids reflect developers’ need to quickly replenish their landbank with attractive sites, especially in an area where there hasn’t been a launch in more than 10 years,” adds Lee. The last GLS site in the neighbourhood was The Serenade @ Holland back in 2001.

Map and overview of Pine Grove - EDGEPROP SINGAPORE

Map and overview of Pine Grove (Parcel A) (Source: EdgeProp LandLens)

According to Jesline Goh, UOL Group’s chief investment and asset officer, the site at Pine Grove Parcel A will be developed into a 520-unit residential project.

She anticipates healthy demand given its location in the established private residential enclave of Mount Sinai Rise. Popular primary schools in the vicinity include Henry Park and Pei Tong. Retail and lifestyle amenities nearby include Holland Village, The Clementi Mall and the Star Vista.

“Given the site’s strong attributes, we expect to see keen interest from both homebuyers and investors,” Goh adds.

Huttons’ Lee points to the possibility of an upcoming MRT station on the Cross Island Line at Sunset Way, which is near Pine Grove.

Based on the bid price submitted by UOL and SingLand, Steven Tan, CEO of OrangeTee & Tie, estimates that the new project at the Pine Grove (Parcel A) site could be priced in the range of $2,300–$2,400 psf when launched.

Tan also notes that interest for the site remained strong despite future competition from the GLS site located right next to it — Pine Grove (Parcel B). The 269,520 sq ft, 99-year leasehold site is currently on the Reserve List and can yield 565 units.

“With no new large projects along the Ulu Pandan and Pine Grove area in the past decade, there may be strong pent-up demand for private homes in this area,” he says.