A new Government Land Sales (GLS) parcel along Tanjong Rhu Road, the first such release in the precinct after a 28-year hiatus, is set to recalibrate launch-price expectations for a 99-year leasehold private residential development with an indicative yield of about 525 units, as the tender—closing on February 5, 2026—attracted five bids and was led by a CDL–Woh Hup joint venture at S$709.25 million, or S$1,455 per square foot per plot ratio (psf ppr), a level that exceeded pre-tender land-rate estimates of roughly S$1,300 to S$1,400 psf ppr and thereby implies an average initial pricing structure widely modelled in the S$3,000 to S$3,100 psf range, with some base-unit projections nearer S$2,900 psf, against a comparable-market backdrop where new launches such as Sims Edge and Sky Holland have crossed S$3,000 psf and resale benchmarks in the broader Tanjong Rhu submarket, including Arena East, have also averaged above the S$3,000 psf threshold. The plot is also near Katong Park MRT, which strengthens its accessibility profile.
Analysts also highlighted a 17.8% spread between the highest and lowest tenders, signalling relatively tight valuation consensus.
The winning bid, which surpassed consensus expectations, indicates that developers are underwriting higher breakeven costs, as land rate per psf ppr typically translates into the eventual selling-price envelope.
Planning parameters point to nine residential blocks, with the tallest rising to 41 storeys, supporting a development quantum of about 520 to 525 units.
Within the H1 2026 confirmed GLS list, the parcel sits alongside Dairy Farm Walk, about 480 units at roughly S$1,000 to S$1,010 psf ppr, and Dover Drive, about 625 units with estimates spanning S$103 to S$404 psf ppr. Together, the three sites contribute about 4,725 units.
Pricing models for the Tanjong Rhu plot are being referenced against both new and resale comparables, given that recent launches such as Sims Edge and Sky Holland have exceeded S$3,000 psf, while Arena East transactions have averaged above that threshold. Recent precedent includes River Green’s 88% take-up at S$3,130 psf during its August 2025 launch weekend, underscoring sustained demand for premium CCR developments.
Analysts also note that older Tanjong Rhu stock often carries larger floor plates, and may require facility upgrades to stay competitive as new supply emerges. Accessibility variables, including proximity to MRT stations, are expected to shape relative value against alternatives, similar to how Hillview Peak’s sales positioning influenced nearby pricing in coming quarters.
