_GLS Tender closing for the residential site at Dorset Road

Tender Closing for GLS Site

Residential site at Dorset Road
With nine bids submitted and a top bid of S$1,338 psf per plot ratio (ppr) at the Dorset Road plot, the amount of interest as well as the land rate comes in above expectations. While the number of participants was quite similar to the ten bidders at the nearby Northumberland Road site (the present Piccadilly Grand under development) that was awarded more than four years ago, the land rate is about 18.4% higher. This reflects robust interest by developers who are generally still confident in the strong homebuyer momentum, married with the strong site-specific attributes of a city-fringe location that is flushed with modern amenities and historical culture, despite economic uncertainty and elevated development costs. Singapore’s residential market remains resilient, supported by low unemployment and healthy household balance sheets. With most residents remaining employed, and given that strong domestic savings provide households with financial flexibility, sustained demand for new product in well located neighbourhoods with amenities currently persist, in turn incentivising developers to continue acquiring land.

Given the more than four years that have passed since the Northumberland Road in the heritage area of Little India was awarded, as well as the keen take-up when Piccadilly Grand was launched in May 2022, developers were willing to impute healthy premiums at today’s land tender close. The top bid of $524.3 million or $1,338 psf ppr is 19.2% above the lowest bid of $440.0 million or $1,123 psf ppr, highlighting the range of risk appetites that various developers have of homebuyer demand for the area in about a year’s time when the project is expected to be launch-ready. The likely selling price for the residential units here could start from $2,700 psf to average above $2,800 psf. When completed, this site would benefit from the convenience of being walking distance to Farrer Park MRT station, and the shopping options of City Square Mall and Mustafa Centre. Additionally, this project will also be walking distance to Connexion, an integrated medical centre and hotel development.

Source: URA Space