Despite robust participation in the latest Government Land Sales (GLS) tender, the Dairy Farm condominium site drew a top bid that came in 5.7% below a nearby benchmark transaction concluded in January 2025, signalling a more cautious land pricing stance among developers. The highest offer, lodged by a consortium comprising ABR, LWH, Macly Capital, and Roxy Pacific, amounted to S$427 million, translating to S$962 per square foot per plot ratio (psf ppr) for the 99‑year leasehold parcel.
Dairy Farm GLS top bid lands 5.7% below prior benchmark, reflecting developers’ more cautious land pricing stance
This parcel is estimated to support the development of roughly 480 private residential units in a low‑density configuration consistent with the broader Dairy Farm precinct. The earlier nearby land sale in January 2025, which cleared at S$1,020 psf ppr, had set a clear benchmark for valuations in the micro-market. Analysts note that The Botany at Dairy Farm, developed from a 2022 GLS site and now almost fully sold, reinforces underlying buyer demand in the precinct.
Thus, the 5.7% year‑on‑year decline in land rate is being read as evidence of shifting market conditions and more calibrated risk‑pricing, even as multiple bidders competed actively for the current site under the GLS programme.
While the number of competing tenders at Dairy Farm underscores continued interest in suburban residential land, developers were concurrently allocating capital to other government sites. These include the Bedok Rise plot, which attracted 10 bids, and a Hougang mega project that drew a major consortium.
This suggests that capital was being spread across several submarkets. From a development economics perspective, the S$962 psf ppr land cost, when apportioned over an anticipated 480 units, forms only one component of the total development stack.
This will also incorporate construction costs, professional fees, and statutory charges—all of which will influence the ultimate selling prices.
Industry analysts project that final launch prices could exceed S$2,300 psf, positioning the new scheme above current secondary market levels yet within a band informed by recent resale evidence. Meanwhile, the broader resale market continues to demonstrate strength, with the resale price index rising 0.6% month-on-month in September 2025 and recording a robust 9.3% year-on-year increase.
Dairy Farm Residences, the key comparable project in the vicinity, registered 35 secondary transactions in 2025 at a median of S$1,830 psf, providing tangible reference points for buyer affordability thresholds and price resistance levels.
In parallel, broader western region dynamics—including differentiated pricing between leasehold and freehold stock, the presence of mature competing condominiums, and locational attributes such as access to public transport and retail amenities—are likely to shape both take‑up and pricing power for the upcoming development.
Even as the moderated land bid signals more conservative underwriting assumptions, these factors will play a significant role in the project’s market reception.
