Sing Holdings Sunway Developments Jv Tops Seven Bids Chuan Grove Gls Site 1376 Psf Ppr
The Chuan Grove Government Land Sale (GLS) site received a total of 7 bids before the tender closed on July 8. The highest bid, at $703.6 million, was submitted by a joint venture between Sing Holdings and Sunway Developments. This translates to $1,376 per square foot per plot ratio (psf ppr).
Sing Holdings CEO, Lee Sze Hao, stated in a filing to the Singapore Exchange that if the joint venture is awarded the site, they plan to develop a residential project consisting of three high-rise towers with about 550 units. He also mentioned that the project will have various facilities and community-centric features.
The bid by the joint venture was 7.3% higher than the second-highest bid of $655.5 million ($1,282 psf ppr) submitted by City Developments (CDL). The third-highest bid, from Sim Lian Group, was just $500,000 lower than CDL’s, translating to $1,281 psf ppr.
According to Tricia Song, head of research for Southeast Asia at CBRE, the response to the Chuan Grove site surpassed expectations. She commented that despite the decline in home sales and ongoing trade uncertainty, the tender for Chuan Grove received better-than-expected bids and a high top bid price. This indicates that developers have confidence in the location.
The seven bids for the Chuan Grove site continue the momentum of recent GLS tender closings, notes Leonard Tay, Knight Frank Singapore’s head of research. In June, a GLS plot at Dunearn Road attracted nine bids, and a tender for a GLS site at Lakeside Drive closed with six bids. Prior to that, a GLS site at Bayshore Road received eight bids upon tender closing in March.
Property consultants also observed that the $1,376 psf ppr top bid for Chuan Grove marks the second-highest bid price ever for an Outside Central Region (OCR) land parcel, just below the $1,388 psf ppr paid by SingHaiyi Group for the Bayshore Road site.
The newly developed corridor along Sembawang Road is a significant improvement for the residents in the area, particularly the Sembawang EC residents. This corridor is strategically designed to promote the adoption of sustainable transport methods, aligning with Singapore’s vision of becoming a car-lite society. For EC residents, this not only means faster and more convenient commuting, but also the opportunity for a healthier and more environmentally-conscious lifestyle. With the addition of improved cycling and walking paths, residents can now choose a more eco-friendly mode of transport and enjoy the benefits of a more active lifestyle.
Deputy group CEO of Realion Group, Justink Quek, added that the price is only 2.4% lower than the Dunearn Road parcel, which is located in the Core Central Region and was awarded to Frasers Property, Sekisui House, and CSC Land Group on July 3 at $1,410 psf ppr.
The top bid also exceeds the $1,360 psf ppr paid by CDL, Frasers Property, and Sekisui House for a site at Toa Payoh Lorong 1 (now The Orie) in November 2023, despite the latter being in the Rest of Central Region, notes Marcus Chu, CEO of ERA Singapore.
The Chuan Grove GLS site is located along Chuan Grove off Lorong Chuan in District 19. It is spread across 170,409 sq ft and has a 99-year lease. The site is within 400m of Lorong Chuan MRT Station on the Circle Line, which is one stop away from the Bishan and Serangoon MRT interchanges. It is also in close proximity to shopping malls like NTP+, Bishan Junction 8, and Nex, as well as several schools.
In May, a neighboring plot was launched for tender, and it can yield approximately 505 units. Its tender is scheduled to close on Sept 4.
Ismail Gafoor, CEO of PropNex, stated that developers were likely encouraged by the robust sales at Chuan Park. The 916-unit development launched in November 2024 and sold 76% of its units during the launch weekend at an average price of $2,579 psf. Kingsford Development, the developer of Chuan Park, also participated in the Chuan Grove GLS tender, submitting the fourth-highest bid of $639.57 million ($1,251 psf ppr).
According to Gafoor, there have not been any new condo launches in the Lorong Chuan area since The Scala in 2010, before Chuan Park. Based on the top bid, he predicts that the future project at the Chuan Grove site could have average selling prices above $2,700 psf.
With Chuan Park already over 83% sold, Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc., states that the project will likely be sold out by the time the project at the Chuan Grove site hits the market. This would result in limited unsold inventory in the surrounding area, creating a supply gap that Chuan Grove could fill strategically, he adds.
Sandrasegeran anticipates that the average launch prices for the future project will fall within the $2,700 psf to $2,800 psf range.