_Knight Frank Commentary (GLS Tender closing of Dunearn Road)
Tender Closing for GLS Site
Dunearn Road
The Dunearn Road Government Land Sales (GLS) site attracted nine bids, an increase over the momentum seen earlier in June at the Lakeside Drive tender, which drew six bids. The level of interest reflects developers’ continued appetite for sites with strong locational attributes, particularly those that are aligned with the growth stories under the vision of the Draft Master Plan 2025. Despite high development costs that include land, construction, and taxes, well-situated plots like Dunearn Road are appealing. As this parcel is the first GLS site in the Bukit Timah area since the Fourth Avenue site was awarded in 2017, the site’s attractiveness outweighed cost concerns, owing to its strategic position within a coveted residential enclave.
The Dunearn Road site’s significance is heightened by its role in kickstarting the future transformation of Bukit Timah Turf City into a “10-minute neighbourhood”. The site will benefit from proximity to Sixth Avenue MRT Station on the Downtown Line and the yet-to-be-completed Turf City MRT Station on the Cross Island Line, shops, parks and community facilities, all designed to be within a short 10-minute walk. With limited new private non-landed housing supply in the immediate area since Fourth Avenue Residences, this project could benefit from underlying local demand. Families drawn to the school belt and higher educational institutes, and retirees looking to right-size while remaining in a familiar neighbourhood, may form the core pool of buyers. As urban planning continues to prioritise integrated, accessible living environments, this site exemplifies how the fusion of a prime location, connectivity, harmony with greenery and the natural environment, and long-term vision can shape future residential demand.
The top bid of S$491 million, translating to S$1,410 psf per plot ratio (psf ppr), was broadly in line with expectations. While this is 8.4% lower than the S$1,540 psf ppr achieved at Fourth Avenue in 2017, it reflects current macroeconomic caution amid global uncertainty. Selling prices at launch are projected to start from S$2,900 psf, potentially averaging between S$3,000 and S$3,200 psf depending on the project's specifications and finish, as well as prevailing demand conditions at the time of launch. With limited new launches in the area in recent months, pent-up domestic demand particularly from owner-occupiers familiar with Bukit Timah’s character and education belt is expected to support interest at launch.