Sinarmas Land and MCL Land’s $1,223 psf ppr bid triumphs for Pine Grove Parcel B


The recently concluded government land sale (GLS) tender drew attention with its three bids, and the highest bid, totalling $692.388 million, was submitted by a joint venture that consists of Sinarmas Land and MCL Land.

This joint venture’s bid marked a substantial 23.8 per cent increase over the second-highest bid.

However, in contrast to a neighbouring parcel’s previous tender, Pine Grove (Parcel B) attracted less enthusiasm, securing only three bids compared to the five received the previous year for Parcel A.

Read: Pine Grove (Parcel A) site sold to UOL and SingLand for $671.5 million

The new launch condominium project on Pine Grove (Parcel A) was launched earlier this year and it’s called Pinetree Hill.

Tender Results for Pine Grove Parcel B GLS Site Nov 2023Industry experts have been quick to analyse the subdued interest in Parcel B, pointing to the presence of a competing development in the vicinity.

There is speculation that market expectations of defending pricing in this neighbouring development might have acted as a deterrent to other potential bidders.

Additionally, analysts are considering the possibility that a strategic time gap between the launch of the nearby project and the anticipated future project in Parcel B could ensure sufficient demand to absorb the influx of new homes in the area.

The specifics of Parcel B’s site include a 99-year leasehold, spanning 269,552 sq ft, with a maximum gross floor area allowing for the development of 565 residential units.

Analysts are estimating the potential average selling price of the forthcoming condominium in Parcel B.

Despite the potential for collective sales in the surrounding area, developers appear to be showing a preference for GLS sites, as evidenced by the multiple bids received for the Pine Grove (Parcel B) GLS site.

It is noteworthy, however, that despite the competitive interest, Parcel B recorded the lowest bid as compared to the two other sites that recently closed for tender.

Analysts also observe a discernible decrease in uncompleted and unsold residential units in the Rest of Central Region (RCR).

This trend is prompting developers to secure residential sites within the RCR actively.

The unsold inventory in RCR reached its lowest point in recent quarters, prompting developers to seize the opportunity to replenish their land banks, especially given the diminishing supply of unsold units in the RCR segment.

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