Two private residential sites at Pine Grove put up for sale under GLS programme
Both sites are adjacent to one another and can yield up to a total of 1,085 units.
Two private residential land parcels located at Pine Grove have been put up for sale under the Government Land Sales (GLS) programme.
Both sites are placed under the Reserve List of the 2H2021 GLS Programme.
The land area of Parcel A is 242,561 square feet and Parcel B is 269,519 square feet.
However, a stipulated condition from the government states that each site can only build a maximum of 520 and 565 units respectively.
The objective is likely to encourage property developers to construct more family-friendly homes with good sizes.
It has been pretty much proven in some of the nearby launches such as Parc Clematis, which has sold more than 95% of its units since launch.
Based on the maximum gross floor area of each land plot, the average unit size of homes built on Parcel A would be 980 square feet, while on Parcel B would be 1,002 square feet.
Hence, the minimal sized unit type would be a 3-bedroom at each of the future new launch condos at Pine Grove.
Analysts believe that despite the stipulation and both Pine Grove GLS sites not being near any MRT stations, developers could still be drawn to these sites.
The reason is that they are considered large enough to construct between 200 – 500 units, for developers to enjoy some form of the economics of sales and manage their risks in the event of unexpected market changes.
In addition, these sites are located within a relatively popular residential enclave and they are within a 1-km radius to top schools such as Pei Tong and Henry Park Primary School.
However, given the sites’ land area, minimum sizes of the units constructed and affordability, developers may be more realistic when submitting their bids for the sites at Pine Grove as compared to the recent land tenders at Slim Barracks.
The winning top bids for both Slim Barracks Parcel A and Parcel B were $1,210 and $1,246 psf ppr respectively. The sites will be redeveloped for new launch condo projects, namely Blossoms By The Park and The Hill @ One-North.
Therefore, analysts expect the top bids for both the Pine Grove sites to come in with the range of $1,000 to $1,100 psf ppr
If that’s the case, then the expected selling price for the future new launch condos on those sites could range between $1,900 to $2,000 psf.