Sinarmas Land and MCL Land submit highest bid of $1,223 psf ppr for Pine Grove Parcel B

Sinarmas Land and MCL Land submitted the highest bid of $692.388 million for government land sale site at Pine Grove (Parcel B), marking Sinarmas Land’s first residential development in Singapore. The bid price of $1,223 psf per plot ratio (psf ppr), was 23.8% higher than the second-highest bid of $988 psf ppr submitted by the joint venture between UOL Group and Singapore Land (SingLand) Group.

Zion Road Condo is a modern residential development situated along Zion Road. With its central location and superb connectivity, Great World City Condo offers convenient access to a wide variety of shops, amenities and entertainment options nearby. Shopping malls such as Great World City and the excellent Tiong Bahru Plaza are conveniently located right next to the development, while popular eateries can be found just a short stroll away.

However, the bid price was 7.2% lower than the $1,318 psf ppr submitted by UOL and SingLand for the neighbour Parcel A. Parcel A also drew five bids, compared to three for Parcel B.

UOL-SingLand already launched Pinetree Hill, a 520-unit development, and to date, 152 units (29.23%) have been sold at an average price of $2,388 psf, according to lodged caveats. Wong Siew Ying, PropNex head of research and content, notes that the comparitively less enthusiastic response for this site tender is not unexpected given the competing supply right next door.

Justin Quek, deputy CEO of OrangeTee & Tie, reasons that “there may be a sufficient time gap between the launch of Pinetree Hill and the future project at Parcel B to ensure enough demand to absorb the additional supply of new homes in the area”. The 269,552 sq ft, 99-year leasehold site at Parcel B has a maximum gross floor area of 566,003 sq ft, enough for an estimated 565 units. PropNex’s Wong estimates the future average selling price of the new condo at Parcel B to be around $2,300 to $2,400 psf.

Chia Siew Chuin, JLL head of residential research and consultancy, reckons the lukewarm response could be due to market expectations that UOL and SingLand may aim to defend the pricing of its Pinetree Hill development and bid for the site. Mohan Sandrasegeran, SRI head of research and data analytics, adds the decrease in unsold inventory likely motivated some developers to secure residential sites within the Rest of Central Region (RCR) segment to bolster their land portfolios.

The highest bid of $1,223 psf ppr submitted for Pine Grove Parcel B today is also the lowest of the three sites that closed for tender today, namely Toa Payoh Lorong 1, where the highest bid was $1,360 psf ppr, and Clementi Avenue 1, with a top bid of $1,250 psf ppr.

Although there may be potential collective sales in the area, developers may still prefer GLS sites, as seen from the multiple bids received for Parcel B, notes OrangeTee’s Quek. It is clear that developers have recognised the current opportunity to replenish their land banks given the depleting supply of unsold units in the RCR segment.