Due to the area's consistent demand, URA lists a second Chuan Grove site for sale; st

Due to the area's consistent demand, URA lists a second Chuan Grove site for sale; strong bids are anticipated

It is estimated that the 14,514.3 sq m plot will produce roughly 505 homes.

13 May 2025

CONDOsingapore.com

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The government land sales (GLS) programme for 2025 has opened the sale of a second residential site in Chuan Grove.

There is room for 505 new condominium units on the 14,514.3 square metre (sq m) property, which is leased for 99 years. Given the consistent demand for housing in the area, it is anticipated to draw strong interest.

This plot's release comes after a similar-sized adjacent site in the Lorong Chuan area was put out to bid last December. The estimated 555 units will be produced by that tender, which ends on July 8.

Good sales

Following a successful launch in the area last November, the two Chuan Grove plots are now for sale. During the launch weekend, Kingsford Development sold almost 700 of the 916 units at its Chuan Park project, resulting in a 76% take-up rate at an average price of S$2,579 per square foot (psf).

Justin Quek, the CEO of OrangeTee & Tie, stated: "Based on URA monthly developers' sale data, there will be limited new housing options, which may translate to higher demand for future private land sites, as there are only 168 units left as of March 2025."

According to market observers, the most recent plot is expected to attract three to six bidders, with a top bid of S$1,000 to S$1,350 per square foot per plot ratio (psf ppr).

In 2022, Kingsford paid $890 million, or roughly S$1,256 per square foot, for the old Chuan Park condo in a collective sale.

According to Marcus Chu, CEO of ERA Singapore, Bartley Vue was the last new project in District 19 prior to the opening of Chuan Park in November 2024. The estate will probably see nearly 2,000 units launched in two years, he said, citing the two sites currently under government tender, "including Chuan Park."

However, considering the low number of unsold units in the region, the project would be comparatively less risky, according to Mark Yip, CEO of Huttons Asia. He noted that as of the first quarter of 2025, the Outside Central Region (OCR) had 4,361 unsold units in the market, which is the lowest amount since the fourth quarter of 2022.

Yip stated that the market could easily absorb the unsold supply in a little over a year, given the OCR's average yearly sales of 3,019 units over the previous five years.

OrangeTee's Quek anticipates that homeowners wishing to downsize from landed properties or upgrade from existing Housing and Development Board (HDB) apartments will drive demand in the Lorong Chuan area.

He mentioned numerous landed residences in Serangoon Gardens and Lorong Chuan, as well as a "large catchment" of HDB upgraders in the neighbouring communities of Serangoon, Bishan, and Ang Mo Kio.

A desirable location

According to Nicholas Mak, chief research officer at Mogul.sg, the location is also appealing because it is close to educational institutions and the Lorong Chuan MRT station. "The US Trump administration's constantly shifting tariff policy has created uncertainty in the current economic outlook, which would impact sentiment in the real estate market. However, there may be greater clarity on the economic front by 2027, when this new condominium is prepared for launch.

On September 4, the Chuan Grove site tender will close.