The recent Government Land Sales (GLS) tender for the residential site at Dorset Road has concluded with nine bids, the highest reaching S$1,338 per square foot per plot ratio (psf ppr). This top bid, submitted by an undisclosed developer, reflects a significant 18.4% increase compared to the land rate of the nearby Northumberland Road site awarded over four years ago. Leonard Tay, Head of Research at Knight Frank Singapore, noted that this demonstrates developers’ confidence in the strong homebuyer momentum and the site’s city-fringe location, despite economic uncertainties and rising development costs.
The Dorset Road site is expected to benefit from its proximity to Farrer Park MRT station and nearby amenities such as City Square Mall and Mustafa Centre. The anticipated selling price for residential units is projected to start from S$2,700 psf, potentially averaging above S$2,800 psf. Tay highlighted that the robust interest in the site is driven by Singapore’s resilient residential market, supported by low unemployment and healthy household balance sheets.
The top bid of S$524.3m or S$1,338 psf ppr, was 19.2% higher than the lowest bid of S$440 million, or S$1,123 psf ppr, indicating varying risk appetites among developers regarding future homebuyer demand. The project is expected to be launch-ready in about a year, with developers keen to capitalise on the sustained demand for well-located neighbourhoods with modern amenities.
