Government Land Sales Tender Launch for Pine Grove Residential Site (Parcel A)

The Urban Redevelopment Authority (URA) today launched a residential site in Pine Grove (Plot A), located off the Pandan Valley, for sale under the confirmed listing of the Government Land Sales (GLS) scheme ) for 1H 2022.

Robust new home sales in 2021 quickly depleted unsold inventory in the market – which fell to a record high of 14,154 units at the end of the fourth quarter of 2021. We expect the Pine Grove site (Parcel A) attracts developers wishing to expand their land inventory. Additionally, future homes on the site should appeal to many buyers given its location in an established residential enclave and proximity to many schools, such as Pei Tong Elementary School, Henry Park Elementary School and Singapore Science and Technology.

The URA capped the maximum number of housing units that could be built on Pine Grove Parcel A at 520 units to manage the flow of traffic in the area. At 520 units, this project would be considered relatively large, but it should still generate interest given the fairly limited supply of new single-family homes nearby.

The most recent new launch in the area, the 660 unit Ki Residences at Brookvale – which went on the market in December 2020 – is around 81% sold, with an average transaction price of $1,815 psf in 2021, based on Realis caveats retrieved February 24. Meanwhile, resale properties nearby Astor Green and Pine Grove traded for an average unit price of $1,223 psf and $978 psf respectively last year.

We estimate that the bidding for the Pine Grove site (Parcel A) could attract 7-8 bidders, with the best bid reaching approximately $586-637 million, reflecting a land rate of $1,150-$1,250 per plot (psf ppr) .

For media inquiries, please contact:
Caroline Goh
Director, Corporate Communications and Marketing
PropNex Limited (SGX Motherboard 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: [email protected]
www.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: [email protected]
www.propnex.com