Tepid Bids for Tengah Site but Strong Optimism for Dairy Farm Project as Developers Stay Cautious
Two suburban residential land plots saw moderate interest when their tenders closed on Jan 14, reflecting developers’ conservative approach in the current economic climate. With a significant supply of government land sale (GLS) sites expected this year, developers appear to be pacing their bids strategically.
Measured Interest in Tengah’s First Private Residential Plot
The tender for Tengah Garden Avenue, the first private housing site in the new Tengah estate, attracted three bids. A Hong Leong-led consortium topped the list with a bid of $675 million, translating to $821 per square foot per plot ratio (psf ppr). Despite its untested location, the project is expected to generate interest from first-time homebuyers and HDB upgraders, particularly with its future connectivity via the Jurong Region Line and proximity to schools such as Anglo-Chinese School (Primary).
At an anticipated break-even price of $1,900 psf, observers predict launch prices for Tengah Garden Avenue’s upcoming condominium to hover around $2,000 psf or higher. This new project, once completed, is expected to contribute to Tengah’s growing reputation as a self-sufficient and eco-friendly estate.
Notably, other executive condominium (EC) projects nearby, like Copen Grand, have demonstrated healthy demand. Copen Grand, launched in October 2022, achieved a 73% take-up rate at an average price of $1,300 psf during its initial launch and sold out a month later.
Bullish Sentiment for Dairy Farm Site
Meanwhile, the tender for a prime site at Dairy Farm Walk, which can house 540 units, garnered two bids. A consortium led by Santarli Construction submitted the top bid of $504.5 million ($1,020 psf ppr), surpassing Sim Lian Group’s bid by 23%.
This bullish bid is particularly noteworthy as it’s 4% higher than the price achieved for the land where The Botany at Dairy Farm now stands. Launched last year, The Botany at Dairy Farm recorded a near sell-out with over 40% of its units sold at a median price of $2,012 psf, reflecting strong demand in the area.
The success of The Botany at Dairy Farm likely encouraged developers to remain optimistic about the Dairy Farm Walk parcel, despite concerns over accessibility and the supply of private homes in the vicinity. Analysts predict that the upcoming development could see launch prices starting at $2,100 psf, with a break-even cost of around $1,900 to $2,000 psf.
| Bidders | Bid Price (S$M) | S$PSF PPR |
|---|---|---|
| Tengah Garden Avenue | ||
| Intrepid Investments (Hong Leong Holdings), CSC Land Group (Singapore), GuocoLand | 675 | 821 |
| Kingsford Huray Development (Kingsford Group) | 670.1 | 815 |
| Sim Lian Land, Sim Lian Development | 668 | 813 |
| Dairy Farm Walk | ||
| SNC2 Realty (Santarli Construction), Apex Asia Alpha Investment Two (Apex Asia Group), Soon Li Heng Civil Engineering, Kay Lim Realty | 504.5 | 1,020 |
| Sim Lian Land, Sim Lian Development | 410 | 829 |
Looking Ahead
As Singapore’s real estate market continues to adapt to evolving buyer preferences and macroeconomic conditions, locations like Tengah and Dairy Farm are poised to play a significant role in meeting demand. These areas are particularly attractive to families and upgraders seeking homes in tranquil suburban settings, with the promise of long-term growth.
