Dairy Farm Walk tops at $962 psf ppr, 5.7% below Jan 2025

URA says the site can yield about 480 homes; the top bid was 0.4% above the second offer.

The Dairy Farm Walk residential site drew five bids at its government land sales tender, with the top offer submitted at $962 per sq ft per plot ratio (psf ppr), signalling measured developer appetite for Outside Central Region projects amid cost and supply considerations.

The Urban Redevelopment Authority said the site can yield about 480 private homes. The top bid of about $427m came from a consortium comprising ABR Holdings, LWH Holdings, Macly Capital, and RP Ventures.

The offer was about 0.4% higher than the second-highest bid and around 14% above the lowest bid, reflecting a relatively tight price consensus amongst bidders.

CBRE said the tender response was in line with expectations but noted that the top land rate came in below recent OCR benchmarks.

The consultancy highlighted that the $962 psf ppr bid was 5.7% lower than the $1,020 psf ppr paid for a neighbouring Dairy Farm Walk plot in January 2025 and below the $980 psf ppr achieved for another nearby site awarded in March 2022, pointing to a more cautious pricing stance by developers.

PropNex attributed the moderated bids to the site’s lower gross plot ratio of 1.4, compared with 2.1 for other Dairy Farm GLS parcels, which limits buildable floor area and raises per-unit construction costs.

The agency also cited the site’s sloping terrain as a factor that may have weighed on bid aggressiveness, even as limited unsold stock in the area supported baseline demand.

On the other hand, Huttons said developer interest remained firm, noting that five bids marked the highest participation since a Dairy Farm Walk tender in 2022.

However, it flagged potential competition from the upcoming Narra Residences project, which is expected to launch in 2027, as a reason bidders adopted a more disciplined pricing approach.

Meanwhile, Realion said the tender outcome reflected balanced market conditions rather than weak demand.

The consultancy pointed to the site’s proximity to schools, amenities, and nature parks as supportive factors, but said developers appeared mindful of near-term supply and execution challenges when calibrating land prices.