Sinarmas Land and MCL Land submit highest bid of $1,223 psf ppr for Pine Grove Parcel B

Three government land sale (GLS) sites closed for tender on Nov 7, with Pine Grove (Parcel B) drawing three bids in total. The highest bid of $692.388 million came from a joint venture between Singapore-listed real estate developer Sinarmas Land and MCL Land – a member of the Jardine Matheson Group.

It could mark the Indonesian conglomerate-backed developer’s first residential development in Singapore. MCL Land, with projects in Singapore and Malaysia, and Chinese developer CSC Land, also submitted the highest of six bids for the Clementi Avenue 1 site.

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The bid price for Pine Grove was $1,223 psf per plot ratio (psf ppr), 23.8% higher than the second-highest bid of $988 psf ppr submitted by a joint venture between UOL Group and Singapore Land (SingLand) Group for the neighbouring Parcel A.

However, compared to UOL and SingLand’s bid of $1,318 psf ppr for Parcel A, the highest bid for Parcel B was 7.2% lower.

PropNex head of research and content, Wong Siew Ying, notes that the “less enthusiastic response” was expected due to the existing competing supply of the 520-unit Pinetree Hill, launched by UOL and SingLand in mid-July. So far, 152 units have been sold at an average price of $2,388 psf.

JLL head of residential research and consultancy, Chia Siew Chuin, suggests a possible cause, that “developers may aim to defend the pricing of Pinetree Hill and bid for the site”. Meanwhile, OrangeTee & Tie’s deputy CEO Justin Quek believes that there is currently “sufficient time gap” between the two projects to allow for enough demand absorption.

The 99-year leasehold site at Parcel B can be developed into a new residential project with an estimated 565 units, for which PropNex’s Wong estimates the future average selling price to be around $2,300 to $2,400 psf.

SRI head of research and data analytics, Mohan Sandrasegeran, cites the depleting unsold inventory of 4,470 units in the Rest of Central Region in 3Q2023 as a possible factor for developers to replenish their land banks – a factor not lost on the successful bidder for Pine Grove.