Government Land Sales Tender Launch Of Pine Grove (Parcel A) Residential Site
Press Release
February 24, 2022
Government Land Sales Tender Launch Of Pine Grove (Parcel A) Residential Site
The Urban Redevelopment Authority (URA) has today launched a residential site in Pine Grove (Parcel A), located off Pandan Valley for sale under the Government Land Sales (GLS) programme Confirmed List for 1H 2022.
The robust new home sales in 2021 has rapidly depleted the unsold stock in the market – which fell to a record low of 14,154 units as at the end of Q4 2021. We expect the Pine Grove (Parcel A) site to attract developers who are eager to shore up their land inventory. In addition, future homes on the site should appeal to many home buyers given its location within an established residential enclave and proximity to numerous schools, such as Pei Tong Primary School, Henry Park Primary School and School of Science and Technology, Singapore.
The URA has put a cap on the maximum number of housing units that can be built on Pine Grove Parcel A at 520 units to manage the traffic flow in the area. At 520 units, we would consider this project to be relatively sizable, but it should still draw interest given the fairly limited supply of new private homes in the vicinity.
The most recent new launch in the area, the 660-unit Ki Residences at Brookvale - which was put on the market in December 2020 – is about 81% sold, with an average transacted price of $1,815 psf in 2021, based on Realis caveats retrieved on 24 February. Meanwhile, nearby resale properties Astor Green and Pine Grove were transacted for an average unit price of $1,223 psf and $978 psf respectively last year.
We estimate that the Pine Grove (Parcel A) site tender could attract 7 to 8 bidders, with the top bid potentially coming in at around $586 million to $637 million, reflecting a land rate of $1,150 to $1,250 psf per plot ratio (psf ppr).
For media enquiries, please contact:
Carolyn Goh
Director, Corporate Communications and Marketing
PropNex Limited (SGX Mainboard Listed Company)
480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
DID : (65) 6829 6748 / 98287834 | Main : (65) 6820 8000 | Fax : (65) 6829 6600
Email: Carolyn@propnex.com
Wong Siew Ying
Head of Research and Content
PropNex Realty (A subsidiary of PropNex Limited)
480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
DID : (65) 6829 6637 / 97453035 | Main : (65) 6820 8000 | Fax : (65) 6829 6600
Email: siewying.wong@propnex.com