Dunman Road residential site up for sale by public tender
The site can potentially yield around 1,040 residential units.
A residential site located at Dunman Road entered a sale by public tender, according to an announcement by the Urban Redevelopment Authority (URA).
An estimated land area of 25,234.3 square metres makes up the property, with the site expected to yield an estimated 1,040 units. Currently, the land is zoned for residential use, with a maximum gross floor area of 88,321 square metres.
A lease period of 99 years is also in place for the site.
Steven Tan, CEO, OrangeTee, expects the site to be attractive to buyers due to several factors.
One of these is its good location, with the site being connected to private and public transport nodes. Near the site is KPE and Nicoll Highway, whilst also within walking distance is the Dakota MRT station along the Circle Line. This would allow future residents to reach the Central Business District within a few MRT stops and the Paya Lebar Interchange, which is one stop away.
Also near to the site are schools, and amenities, with the Old Airport Road Food Centre, Paya Lebar Quarter, and Singpost Centre.
“Since it is a large site involving a high price quantum, we may expect more joint ventures in this bidding exercise. We anticipate between four to seven bidders. The top bid could range between $1,250 and $1,350 psf ppr, translating to an overall bid of $1.188b to $1.284b. The potential selling price of the future development could range between $2,300 to $2,400 psf,” commented Tan.
The same positive sentiments were also shared by Wong Siew Ying, Head of Research and Content, Propnex Realty, as both the proximity of amenities and the confidence of developers from previous mega projects are set to spur interest from buyers.
“We expect the Dunman Road site to receive a fair amount of interest from developers, likely drawing three to five bids – and it could see developers partnering up to form consortiums to bid for the plot, given the size of the project and investment quantum. We estimate that this site tender could receive a top bid of around $1.235b to $1.331b, reflecting a land rate of $1,300 to $1,400 psf per plot ratio (psf ppr). A recent GLS tender for a residential site in Jalan Tembusu was awarded in January 2022 for $768 million ($1,302 psf ppr),” said Wong.