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The Star
26-06-2025
- Business
- The Star
Maiden plot in Singapore's Bukit Timah Turf City snags nine bids as developers jostle for first-mover advantage
SINGAPORE: A consortium led by Frasers Property, Sekisui House and CSC Land Group (Singapore) has submitted a top bid of S$491.5 million in a hotly contested tender exercise for the first residential site in Turf City along Dunearn Road. A total of nine bids were submitted by developers jostling for first-mover advantage in Turf City, which is among key new housing areas in more central locations identified in the Draft Master Plan 2025, and will bring 15,000 to 20,000 new public and private homes to the prime Bukit Timah area. This 13,492 sq m prime district Government Land Sales (GLS) site, which could yield 380 homes, has attracted the highest number of bids since October 2021, when 10 bids were submitted for two smallish sites at one-north, and nine bids were put in for a plot at Lentor, now Lentor Modern, in July 2021, said Tricia Song, CBRE research head for Singapore and South-east Asia. 'We believe the Draft Master Plan 2025 may have boosted sentiment for this Turf City maiden site,' she said. 'The plans for Bukit Timah Turf City look promising, with 15,000 to 20,000 homes, lush greenery, good transport connectivity and 22 heritage buildings being proposed for conservation, including the two grandstands, which will be rejuvenated as community nodes,' she added. Apart from the Dunearn Road plot and an adjacent site that is slated to be launched for tender in December 2025, Wong Siew Ying, PropNex head of research and content, noted there are '20 pure residential plots, three white sites and two residential with commercial at first storey plots potentially lined up in Turf City over the next 10 to 15 years'. Mark Yip, chief executive of Huttons Asia, said the draft masterplan has provided 'more clarity on the land usage in Turf City and reduced risks for developers'. 'The two adjacent residential sites with commercial use at the first storey will provide amenities for the new housing area. Community and recreational facilities and parks will be within a 10-minute walk,' he added. The top bid of $1,410 per square foot per plot ratio (psf ppr) is also the highest since the River Valley Green (Parcel B) plot was awarded to GuocoLand for $627.8 million, or $1,420 psf ppr, in February 2025. Among the nine bidders for the site, the top bid is 3.7 per cent higher than the second highest of $1,360 psf ppr tabled by City Developments. The two close bids suggest that the developers share a good measure of confidence for the site, despite more housing supply slated for this area, Wong noted. Nonetheless, the $1,410 psf ppr bid is still lower than land prices in December 2017, when a nearby plot in Fourth Avenue – now Fourth Avenue Residences – drew seven bids, with a top bid of $1,540 psf ppr, Song said. 'The lower land bids (today) generally reflect higher construction costs, lower efficiency from gross floor area harmonisation and higher potential Additional Buyer's Stamp Duty (ABSD) on both developers and buyers,' she said. Tight competition for the Dunearn Road site was expected as District 10 has only seen a few GLS sites made available in recent years,' Marcus Chu, chief executive of ERA Singapore, said. The most recent site awarded in District 10 was in Orchard Boulevard, now Upperhouse at Orchard Boulevard, which sold for $1,617 psf ppr in January 2024, he added. Justin Quek, chief executive of OrangeTee & Tie, noted that the Dunearn Road site is close to Sixth Avenue MRT Station and some top schools in Bukit Timah, which may fuel pent-up demand from families. Dr Lee Nai Jia, head of real estate intelligence PropertyGuru Group, noted that demand for non-landed homes in District 10 grew steadily in the first quarter in 2025 but fell in April due to heightened macroeconomic uncertainty from geopolitical and trade tensions. 'In May, demand started to rebound, but activity remained below that from a year ago. But a renewed projects pipeline, coupled with (the future project) on the Dunearn Road GLS site, could re-energise interest in this area,' he said. Soon Su Lin, chief executive of Frasers Property Singapore, said this will be 'an exciting opportunity for us to be part of the Turf City masterplan', if awarded. 'Given that the last GLS site in the vicinity was awarded nearly a decade ago, we believe that quality developments, specifically in prime districts 9, 10 and 11, will continue to be highly attractive to home buyers,' she said. - The Straits Times/ANN
Business Times
23-05-2025
- Business
- Business Times
Higher height limits a gamechanger for redevelopment potential in areas around Singapore airports: analysts
[SINGAPORE] Relaxed height restrictions near airports and airbases could result in huge increases in built up floor area allowances, a move lauded by property market observers for its potential to unlock redevelopment opportunities. The government is reviewing Singapore's height limits for buildings near airports, Transport Minister Chee Hong Tat disclosed on May 22. Residential buildings could be built up to 15 storeys taller, and commercial and industrial buildings could be built up to nine storeys taller. Depending on the existing height limit, adding up to 15 storeys could mean a 100 to 200 per cent increase in gross floor area (GFA) for residential developments, said Tricia Song, CBRE's head of research for Singapore and South-east Asia. 'In land-scarce and densely populated Singapore, one of the fastest and most efficient ways to increase liveable space is to go vertical – allowing more gross area to be built on the same land site,' she said. Alan Cheong, executive director at Savills Singapore, called the review a welcome policy change that may allow nearby properties to raise their plot ratios. Plot ratio determines the maximum allowable GFA on a plot of land. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The review was conducted by the International Civil Aviation Organization (ICAO) and the Civil Aviation Authority of Singapore (CAAS), and changes take effect internationally from August. Singapore has two airports in Changi and Seletar; and military airbases in Paya Lebar, Sembawang, Changi and Tengah. Areas near Changi Airport include Pasir Ris, Tampines, Simei, Bedok, Eunos and East Coast Park. Seletar Airport is near Seletar, Yishun, Ang Mo Kio and Yio Chu Kang. Cheong said the review could lead to a significant increase in GFA from collective sales or redevelopment of existing residential and commercial properties. Older commercial buildings near Paya Lebar air base, previously limited by height restrictions, could see redevelopment potential. Additional GFA may be unlocked if industrial sites are rezoned for higher-value uses. Details of the proposed changes have yet to be revealed by the authorities. Building height limits near airports and airbases depend on their distance from runways and air navigation equipment, said Lim Boon Chai of To70 Aviation Consulting. Generally, buildings up to 4 km from an airport are allowed to reach 45 m above runway elevation, though stricter limits apply along flight paths or near navigational facilities. Outside these zones, height caps vary – up to 305 m in the CBD and 150 m in some residential areas, he said. A 2019 report by the Centre for Liveable Cities, an arm of the Ministry of National Development, noted that in Tampines, building heights are capped at 12 to 14 storeys. Aviation height restrictions, among other factors, can influence the type of properties built on a site and the value they fetch. Market boost? Analysts reckon that changes to height limits could also drive up the value of existing homes and buildings. CBRE's Song said that for older projects, the increased plot ratios will benefit potential en bloc sellers as their land is now worth more. 'If you can build more gross area on the same piece of land, there is more premium in selling for redevelopment than in selling in the secondary market,' she added. Developers in turn may now be prepared to pay more. 'The gap between developers' prices and sellers' prices will narrow, and more en bloc or collective sales could happen,' she said. Developers could also now have more choices for their landbanking, she added. The collective sales market was subdued in 2024, with only four successful deals out of the 16 properties put on the market – half of 2023's 32 properties. Most recently in April, the tender for Pasir Ris condo Elias Green closed with no bids, after being put on the market with a guide price of S$928 million. The site, currently built up to 16 storeys and standing on a parcel with a low plot ratio of 1.4, was priced at a land rate of S$1,355 per square foot per plot ratio. This factors in a 10 per cent bonus gross floor area and an estimated land betterment charge of S$150.8 million for intensification and upgrading to a fresh 99-year lease. 'Owners of Elias Green have submitted an outline application for an increase in plot ratio from 1.4 to 1.8. With this relaxation in building height, the URA may view the outline application in a more favourable light,' said Tay Liam Hiap, the agency's managing director of capital markets and investment sales. Savills' Cheong expects prices of new residential projects or resale flats near airports and air bases to rise. 'Any new launches or resales in the area will price in the future growth potential and thus prices would implicitly be moving up from now on,' he said. 'Developers would bid according to what they believe they can sell and if the selling prices go up, then they will be more willing to bid higher for either government land sales or collective sales sites.' CBRE's Song noted that for residential projects, taller buildings generally command higher prices per square foot, as buyers value unblocked views and reduced noise. While relaxed height restrictions could increase supply across residential, commercial and industrial sectors, lifting GFA allowances requires further feasibility studies, said Knight Frank Singapore's head of consultancy Alice Tan. Private sites with 'low development baselines' are less likely to support higher plot ratios or upgraded use groups, given current high land betterment charge (LBC) rates, she noted. Developers pay an LBC for the right to enhance the use of some sites or to build bigger projects on them. Still, analysts cautioned that more studies are needed before redevelopment can take off. CBRE's Song said: 'Increased plot ratios will mean higher density, and the existing road network and transport infrastructure may not be able to support. Detailed transport impact assessment and planning will have to be undertaken.' Chua Yang Liang, JLL's head of research and consultancy for South-east Asia, said: 'Any increase in development capacity would need to be evaluated alongside corresponding adjustments to LBCs, construction costs, and other financial considerations that developers must balance.' The CAAS said agencies will assess the implications of the revisions, taking into account other infrastructure and planning considerations. Savills' Cheong also pointed out that the increase in height limits may not be beneficial for commercial properties upon redevelopment. 'Already, the demand for offices in less prime locations is not strong, and the retail/food and beverage sectors have been struggling.'
