Comprehensive Overview of Dairy Farm Walk GLS secured by Guocoland Group

Brief Introduction about Dairy Farm Walk GLS

Dairy Farm Walk site was for sale by public tender on 21 October 2021 under the Confirmed List of the second half 2021 (2H2021) Government Land Sales (GLS) Programme, initiated by Urban Redevelopment Authority (URA). Dairy Farm Walk site has an area of 168,597 sq ft and is a 99-year leasehold site, has the potential to yield about 350 to 400 residential units.

Dairy Farm Walk GLS Details

Lot NoMK16-02800V
Land Area15,663.18sqm / 168,598sqft
Site NameDairy Farm Walk
Date of Award11 March 2022
Successful TendererGuocoland Land Pte Ltd and Guocoland Development Pte Ltd
Successful Tenderer Price$347,001,000
Land UseResidential (Non-Landed)
Gross Floor Area32,893sqm
Lease Period99 years

What is GLS?

GLS most commonly refers to the Government Land Sales (GLS) Programme. It’s a crucial mechanism for the city’s development, managed by the Urban Redevelopment Authority (URA).

Through the GLS Programme, the government releases state land for development by private developers. This happens twice a year, with a list of available sites announced for each programme.

There are two main ways these sites are released:

  • Confirmed List: These sites are launched for sale on pre-determined dates, usually sold through tenders. Most land parcels fall under this category.
  • Reserve List: Developers can apply for these sites, and tenders are only launched if there’s sufficient interest.

Who won the tender for Dairy Farm GLS site?

Guocoland Group’s subsidiaries, Guocoland Land and Guocoland Development, stand out as the top contenders for the Dairy Farm Walk GLS site. The group’s bid of $347 million translates to $980 per square foot per plot ratio (psf ppr).

The runner-up bid of $970 per square foot per plot ratio (psf ppr) was presented by a partnership between United Engineers and Soilbuild Group, falling only 1% short of the leading bid.

The table below shows a summary of the bidders for Dairy Farm Walk GLS tender.

RankingName of TendererTender Sale Price ($)Tender Sale Price ($ psf ppr)
1Guocoland Group347,001,000980
2United Engineers and Soilbuild Group343,434,343970
3Qingjian Realty and Santarli Construction337,888,888954
4Wing Tai Holdings321,333,333908
5UOL Group, Singapore Land Group and Kheng Leong Co301,800,000852
6City Developments Ltd and MCL Land293,000,000828
7Hong Leong Holdings and Hong Realty275,000,000777

Guocoland Group’s Success in Mass-Market Projects

Guocoland Group’s proficiency and achievements in large-scale projects targeting the mass market are evident. Their strong track record in developing projects outside the Central Region (OCR) suggests a level of confidence reflected in their winning bid for the GLS site. Notably, their project Treasure at Tampines, comprising 2,203 units, achieved a full sell-out within 39 months of its launch, commanding an average price of $1,422 per square foot. Following this success, the developer has been actively seeking opportunities to acquire additional land for future developments.

Singapore Real Estate Experts’ Thoughts

Wong Siew Ying, Head of Research and Content at PropNex, remarks “It is not surprising that the tenders for the two plots [at Dairy Farm Walk and Bukit Batok West] – both located in the Outside Central Region (OCR) – have witnessed keen bidding among developers”. He also added on that “Following the robust new home sales last year(2020), many developers are eager to top up their land inventory, especially for OCR sites.”

Nicholas Mak, Head of Research at ERA Realty, mentioned “With the land rate of $980 psf ppr, the new condo project at the Dairy Farm Walk residential site could be launched at $1,880 to $1,980 psf”

Conclusion

Guocoland Group has named the new development at Dairy Farm Walk GLS as Hillock Green, after successfully came out as top bidder for the public tender.


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