_Knight Frank Commentary (GLS Tender closing of Chuan Grove)

Tender Closing for GLS Site

Chuan Grove
The Chuan Grove Government Land Sales (GLS) site attracted seven bids, maintaining the momentum of the nine bids at the Dunearn Road plot and the six bids at the Lakeside Drive tender, both earlier in June. Sites with strong locational attributes, within walking distance to an MRT station and amenities, in close proximity to good schools or international schools will continue to draw developers to government tenders.  This is the first GLS site in the Lorong Chuan neighbourhood since 2009 when the Hong Leong Group was awarded a parcel (The Scala) at Serangoon Avenue 3 for S$221 million or S$529 psf per-plot-ratio (ppr). In more recent times, Chuan Park was sold enbloc in July 2022 for S$890 million to the Kingsford Group, where it was reported that 696 or 76% out of 916 units were sold when this new project was launched in November 2024 at an average price of around S$2,579 psf.

Chuan Grove could attract potential buyers who have decided to right-size from the landed areas in Serangoon as well as at Ang Mo Kio Avenue 1 (Tai Hwan and Mei Hwan areas), given its proximity to Lorong Chuan MRT station as well as Serangoon and Bishan MRT stations just a stop away, adding access to the Circle, North-East and North-South lines. Additionally, NTP+, New Tech Park's mall with various retail options is located beside the site, as well as Bishan Junction 8 and NEX, both a station away, makes the site a lot more attractive. In addition to several local schools of various levels nearby, homeowners can also expect strong leasing interest from families of foreign professionals given that the site is situated next to the Australian International School.

The top bid of S$703.6 million, translating to S$1,376 psf ppr, was broadly in line with expectations. Selling prices at launch are projected to start from S$2,800 psf, potentially averaging between S$2,900 and S$3,000 psf depending on the project's specifications and finish, as well as prevailing demand conditions at the time of launch. With Chuan Park having sold 83.1% or 761 out of a project total of 916 units as at May 2025 based on URA developer sales data, proving the current popularity of the location, there should be potential homebuyers who will be drawn to this new project and support interest at launch.

Source: URA Space