URA launches Dairy Farm, Tengah, Bayshore sites, 2,000 homes

The Urban Redevelopment Authority (URA) on Thursday (Jun 13) published three residential areas to tender for the first half of the 2024 government sale of land (GLS) program.

Three sites are located at Dairy Farm Walk, Tengah Garden Avenue and Bayshore Road.

The three land parcels are on a 99-year lease and can yield a total supply of 1,915 housing units.

The confirmed plots are Dairy Farm Walk, Tengah Garden Avenue and Bayshore Road.

Confirmed list sites are launched in accordance with a timetable regardless of demand. Sites that are on the reserve list on the other hand they are available for auction only if developers make an offer that is accepted by the government.

Both the Dairy Farm Walk and Bayshore Road plots are zoned to be used for residential purposes, while the property in Tengah Garden Avenue is zoned residential, with commercial zoning only for the first storey.

The bids for land will be less than those for previous offered sites in the region. This comes as the government increases land availability and developers have to deal with “challenging” conditions, such as high construction costs, interest rates, and the harmonization of gross floor area (GFA)

Under the new standardised definition of harmonised GFA every strata area must be classified as GFA and will be governed by the Master Plan plot ratio.

The 21,881.8 square metres (sq m) plot at Dairy Farm Walk could yield 540 units. It has a maximum gross floor area of 45,952 sq m. The maximum building height is from four to six floors in the low-rise area and 75 to 85 m in the medium-rise zone.

Market watchers also noted that the Dairy Farm Walk site is evolving into a residential area, with construction of new condominiums, such as The Botany at Dairy Farm and Dairy Farm Residences launching in the area.

The location is well-positioned to attract a large number of HDB residents of the Bukit Panjang and Choa Chu Kang Estates who are looking to upgrade their homes.

The Botany at Dairy Farm is the only project in the same location. Developers will profit from this opportunity, as potential buyers who were not interested in earlier projects could be tempted to move on to the GLS development.

This round is expected to be less competitive due to the fact that developers are becoming more cautious There are also other websites that offer attractive tenders.

It is anticipated that the Dairy Farm Walk site to potentially receive around three bids, with the highest bid between S$800 and S$850 per square foot, based on the plot ratio (psf ppr).

On the other hand the plot launch of Dairy Farm Walk isn’t as thrilling due to the fact that several private residential developments have already been launched in the area. In bidding for the site developers should consider the unsold supply at recent launches near by.

The Botany at Dairy farm that was put on the market in March last year, has sold 90% of its 386 apartments at an average price of more than S$2,050 for each square foot. The site auction will result in only two or one bid, with the highest bid being S$880 to S$950 per square foot at a p.p.

Two or three bidders with the highest price of between S$900 to S$1,000 per square foot per person.

The project completion period for the Dairy Farm Walk site is 60 months.

The URA estimates that the land parcel could produce up to 860 residential units. It has a maximum building height of 60 meters.

Tengah Gardens Avenue is a mixed-use site that is expected to draw three bidders or less. The highest bid may be anywhere from S$800-$850 per square foot at a ppr.

Developers are likely to be attracted by the site due to the rising property value and improved transport infrastructure.

The site can attract three or two bids, which will be between S$900 and S$980 psf ppr.

The Chuan Park

Tengah is a relatively new region for many homebuyers, yet it has a lot of potential. Developers will need to balance the factors that drive demand and supply from new developments in the area and also gain advantages by being the first to move.

The most expensive bid for the plot will vary from S$850 psf to S$950 for each square foot.

The project’s completion time stands at 66 months, subject to the submission of the first application to the regulator for approval on or before Dec 31 2025.

The 10,493.9 square meter site on Bayshore Road can potentially yield 515 units. It is a GFA of 44,075 sq m and a maximum building height of 101-105 m. Its project completion period is 60 months.

The Bayshore Road development will be the estate’s first private project, following the launch of the two first Build-to-Order projects back in October.

Furthermore, the site is situated close to the Bayshore MRT station and directly accessible to Marina Bay, the Central Business District and Orchard Road. The site will attract buyers from east including HDB upgraders as well as those who reside in nearby land houses that are looking to downsize to a condominium unit without having to move too far.

Developers to trigger this site to be sold due to the high demand for homes in the region. He claimed that the last GLS award in the area was held in January of 2016, and was a fiercely contested award between eight bidders. It was eventually awarded at S$858 psf ppr.

Sites could be offered at a maximum of S$900 to S$950 per square foot for each person.

The property is not likely to be put up for sale anytime soon because of the upcoming launch of the H1 GLS program as well as the huge amount of housing units that are available. If the developers do not apply, the site may be added to the confirmed list before the end of the year.

The most recent tender launch has the largest supply of the confirmed list of units in a single GLS programme since the H2 2013 GLS programme. To accommodate the growing demand, the GLS program has increased its confirmed list of private housing units to 5,450 by H1 2024. This is up from 4,090 units in the H1 2020 and 5,160 by H2 2023.

The tenders for Dairy Farm Walk and Tengah Garden Avenue sites will close at 12 pm on January 14, 2025.