SINGAPORE: The upcoming tender for the Tengah Garden Avenue site is expected to attract strong developer interest, being the first private residential site offered in the Tengah area, according to property analysts.
Singapore Business Review reported that PropNex’s head of research and content, Wong Siew Ying, anticipates a “measured participation” in the tenders for both the Tengah Garden Avenue and Dairy Farm Walk sites.
Ms Wong forecasts that the 860-unit Tengah Garden Avenue plot could attract two to three bids, with the top bid ranging from S$740 million to S$806 million, translating to S$900 to S$980 per square foot of buildable area.
Developers eager to secure a first-mover advantage in Tengah are expected to be particularly drawn to this site.
As Ms Wong notes, being the first private residential, non-executive Condominium (EC) project in the area, it presents an attractive opportunity for developers looking to establish a foothold in Tengah.
Justin Quek, CEO of OrangeTee & Tie, highlights the strategic location of the plot, emphasising its proximity to the upcoming Hong Kah MRT station on the Jurong Region Line.
This prime location is likely to spur interest among developers and homebuyers alike. Mr Quek also points out that the limited number of nearby private homes could drive high demand for this plot, especially among buyers who do not qualify for ECs.
He projects that the site could receive up to four bids, with the highest offer potentially reaching S$950 per square foot per plot ratio (psf ppr).
In addition to the residential units, the site includes 3,000 square metres of commercial space, enhancing its appeal. In contrast, the Dairy Farm Walk site is expected to attract more cautious interest from developers.
This site, which can accommodate up to 530 units, may see moderate interest due to the substantial number of new projects already underway in the area. Mr Quek anticipates that developers might exercise caution given the large scale of the project.
He expects two to three bidders, with the highest bid possibly reaching S$1,000 psf ppr.
PropNex’s Wong is slightly more conservative, predicting that the Dairy Farm Walk tender might only garner one to two bids, with the top bid likely falling between S$435 million to S$470 million or S$880 to S$950 psf ppr.
The tender process for the Dairy Farm Walk and Tengah Garden Avenue sites will conclude on Jan 14, 2025, at 12 pm.
Additionally, from the Reserved List, the Urban Redevelopment Authority (URA) has made the Bayshore Road site available for application. This site, located in the emerging Bayshore precinct, is considered highly attractive.
Huttons Senior Director for Data Analytics, Lee Sze Teck, mentions the possibility of this site being triggered for sale. Should this occur, Mr Lee predicts that the top bid might range between S$900 and S$950 psf ppr. /TISG
Read also: URA releases new residential sites for sale: Dairy Farm Walk, Tengah Garden Avenue and Bayshore Road