Summary
The higher participation by developers in the latest GLS tender for the site at River Valley
Green (Parcel B) shows that the major developers looking to replenish their land bank in the
light of the recent spike in new home sales since last November. However, the analysis of
the spread of the bids shows that the developers’ appetite for land is still tempered by
caution.
This is the fourth site in the location around Great World City to be sold in the past 12
months. The sale of these land parcels would also sate the developers’ appetite for
condominium sites in District 9, which would also knock the wind out of the sails of private
projects that are attempting enbloc sales in the short term.
The new development on this site could be launched in 2H 2026 at about $3,100 to
$3,400 psf, barring any market shocks such as new property cooling measures and
economic slowdown.
Introduction
The tender for the Government Land Sale (GLS) residential site at River Valley Green
(Parcel B) closed today, attracting 5 bids and the top bid is higher than the land rate of
nearby GLS sites sold earlier, signalling that developers’ appetite for land is growing again.
Brief Description of the Site
With a site area of 126,325 sq ft, the GLS site, River Valley Green (Parcel B) can yield about
475 condominium units. Being zoned for residential development with commercial space on
the first storey. The developer can build commercial space ranging from 4,300 to 5,380 sqm,
which are likely to be used for shops and F&B outlets. Such retail space would provide retail
amenities that could enhance the attractiveness of the residential properties to homebuyers.
This site is also attractive due to its proximity to the Great World MRT Station which is only
230 metres away. This will allow residents easy access to public transportation within a
stone’s throw from their homes.
River Valley Green (Parcel B) GLS site map
The fourth site to be sold in the Great World City area
If the tender for the subject site is awarded to the top bidder, it will be the fourth GLS
residential site in the River Valley / Zion Road area to be sold by the government in the past
twelve months.
The residential developments that are being built on the three land parcels that were sold
between April and August 2024 are not launched for sale to the public yet. Altogether, these
four sites can yield a total of 2,200 private housing units, which is a significantly large supply
for that location.
The sale of these land parcels would also sate the developers’ appetite for condominium
sites in District 9, which would knock the wind out of the sails of private projects that are
attempting enbloc sales in the short term.
Table 1: GLS residential sites in the River Valley / Zion Road area
GLS Land Parcel | Tender Award Date | Tender Price ($) | Price ($ psf ppr) | No. of Bids | Initial est. No. of Units |
Zion Road (Parcel A) | 16 APRIL 2024 | $ 1,106,888,000 | $ 1,201.93 | 1 | 735 |
River Valley Green (Parcel A) | 27 JUNE 2024 | $ 463,999,999 | $ 1,325.27 | 2 | 380 |
Zion Road (Parcel B) | 7 AUGUST 2024 | $ 730,088,888 | $ 1,304.33 | 2 | 610 |
River Valley Green (Parcel B) | N.A. | $ 627,835,896 | $ 1,420.00 | 5 | 475 |
Source: Mogul.sg Research
These four sites in the River Valley area will be developed by different developers. In theory,
homebuyers would benefit if the developers do not collude and instead compete mainly on
price and housing quality.
Table 2: Developers of GLS residential sites in the River Valley / Zion Road area
GLS Land Parcel | Tender Price ($) | Developer(s) (Top Bidder) | Initial est. No. of Units |
Zion Road (Parcel A) | $ 1,106,888,000 | City Devts Ltd & Mitsui Fudosan | 735 |
River Valley Green (Parcel A) | $ 463,999,999 | Wing Tai Holdings | 380 |
Zion Road (Parcel B) | $ 730,088,888 | Allgreen Properties | 610 |
River Valley Green (Parcel B) | $ 627,835,896 | Guocoland | 475 |
Source: Mogul.sg Research
Analysing the bids
This tender attracted five bids from developers, which is more than double the number of
bids submitted in the previous tender for sites in this location. The most recent GLS tender in
this area was for the site at Zion Road (Parcel B). It closed in July 2024 with only two bids
submitted.
Table 3: River Valley Green (Parcel B) tender bids
Ranking | Name of Tenderer | Tendered Sale Price ($) | Land Rate ($ psf ppr) |
1 | Guocoland | $ 627,835,896 | $ 1,420 |
2 | Sing Holdings | $ 576,330,000 | $ 1,304 |
3 | Singhaiyi Group | $ 566,000,000 | $ 1,208 |
4 | Hong Realty | $ 553,562,000 | $ 1,252 |
5 | Kingsford Group | $ 552,120,000 | $ 1,251 |
Source: Mogul.sg Research
The higher participation by real estate developers in this land tender shows that the major
developers are looking to replenish their land bank in the light of the recent spike in new
home sales since last November.
GuocoLand’s bid in the tender that closed today was the highest at $627,835,896, which
translates to a land rate of $$1,420 psf ppr.
The top bid is a significant 8.9% higher than the second highest bid from Sing Holdings,
indicating GuocoLand’s determination to acquire this site. Furthermore, the gap between the
second to fifth bid is rather close, differing only by 4.2%, illustrating that the other bidders
hold similar views regarding their valuation of this site, which are less than $1,310 psf ppr.
It also indicates that the developers’ appetite for land is tempered by caution.
In our opinion, it is very likely that the authorities will award this tender to GuocoLand due to
its top bid, and it is an experienced property developer.
Estimated launch price of the new project
Based on the land rate of the top bid and the expected development costs, the new
development on this site could be launched in 2H 2026 at about $3,100 to $3,400 psf,
barring any market shocks such as new property cooling measures and economic
slowdown.
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