As the city-fringe region continues to suffer diminishing housing units and pent-up demand, one of two Pine Grove residential plots was placed up for public tender on Thursday (Feb. 24).
520 houses may be built on the 99-year-leasehold property, which measures 22,534.7 square meters and has a GFA of 47,323 square meters.
The deadline for submissions is June 2, which falls within the first half of the Government Land Sales (GLS) program.
Pine Grove still has a second site on its reserve list
Tenders for a block of land on Dunman Road, near the Dakota MRT station and the Geylang River, will open in March and expire on June 2, according to the Urban Redevelopment Authority (URA).
Approximately 1,035 private residences may be built on this property, which was formerly on the reserve list.
Nearly 4,000 new homes will be built on the Pine Grove and Dunman Road properties, representing a 40% increase above the number planned for the 2021 GLS program for the second half.
Unsold inventory touched an all-time low of 14,154 units on December 31 last year, according to PropNex, a real estate data company.
There is a limit of 520 units that may be erected on the Pine Grove property in order to keep traffic moving smoothly.
There is a scarcity for private properties nearby, according to PropNex Realty’s head of research and content, Ms Wong Siew Ying.
About Ki Residences
The 660-unit Ki Residences at Brookvale, which will be completed in December 2020, is now 81 percent sold, according to URA Realis statistics, with an average transaction price of $1,815 psf.
According to Ong Teck Hui, senior director of research and consultation at JLL, recent launches such Ki Residences and Clavon in Clementi Avenue 1 are “not nearly equivalent” to the Pine Grove GLS site in terms of location.
“HDB heartland Clavon is located in Clementi town, whereas Ki Residences is located on the Sunset Way estate. With its location on Ulu Pandan Road, the Pine Grove lot is an extension of the prestigious Holland Road corridor and shares many of its appealing features “she said.
It’s expected that between five and eight bidders will be interested in the Pine Grove tender and that the best price will be between $1,100 and $1,200 per square foot (psf ppr).
Between $484 and $535 million, ERA Realty’s director of research and consulting Nicholas Mak expects the highest offer to come in at between $950 and $1,050 psf ppr.
Although Lee Sze Teck, senior director of research at Huttons Asia, feels that “developers would be cautious,” the second Pine Grove plot might be placed for sale if demand and land offers for the first one are substantial.
It will be a direct rival to (the first site) if it is placed up for sale.
The second Pine Grove lot has a maximum GFA of 52,582 square meters and measures 25,039.2 square meters. There are 565 units in all.