Commentary on URA tender closing at Chuan Grove

Source: URA SPACE

The Chuan Grove site received a healthy 7 bids, and a top bid price of $703.60 mil or $1,376 psf ppr, submitted by a joint venture between Sing Holdings and Sunway Developments. This was 7.3% above the second highest bidder, CDL which was just 0.1% above the third highest bidder, Sim Lian Group. Kingsford, which is developing Chuan Park launched in Nov 2024, put up the 4th highest bid of $1,251 psf ppr.  The top four bid prices are relatively tightly-banded within a 10% difference, showing consensus about the attractiveness of the site which is within 1km to several primary schools, right next to the Australian International School, and is within walking distance to Lorong Chuan MRT. 

This is the first of 2 sites in Chuan Grove, the second of which was released for sale under the H1 2025 GLS Programme and is of a comparable size at 500 units. The last awarded GLS site in the area was Serangoon Avenue 3 which now houses existing project The Scala (468 units), awarded in Oct 2009 to Hong Leong Group for $221.21 mil ($529 psf ppr) after receiving 15 bids.

Other recent suburban GLS sites of a comparable size include Lakeside Drive (575 units) which drew 6 bids, and a top bid price of $608.00 mil or $1,132 psf ppr, submitted by CDL entities and was awarded on 9 Jun 2025 and Bayshore Road (515 units) which received 8 bids and was awarded to SingHaiyi Group on 28 Mar 2025 for $658.89 mil ($1,388 psf ppr) setting a new benchmark price for an OCR plot. 

The top bid price of $1,376 psf ppr for the Chuan Grove site trails marginally behind the $1,388 psf ppr record for a Outside Central Region (OCR) site set by the GLS site at Bayshore Road. We believe that strong take-up at recent nearby launch Chuan Park (916 units) which is located closer to Lorong Chuan MRT, encouraged developers to bid more confidently for the Chuan Grove site. Launched in Nov 2024, Chuan Park saw robust take-up over its launch weekend, moving 696 units (76%) at an average price of $2,537 psf. To date, 766 units (84%) have been sold at a median price of $2,591 psf. Given low unsold inventory in the area, there could still be ample demand from HDB upgraders or potential downgraders from landed estates in Serangoon, Bishan and Ang Mo Kio nearby.