Frasers, Sekisui, CSC Land consortium tops nine bids for Dunearn Road site with S$1,410 psf ppr bid
It bids S$491.5 million in state tender for first residential site to be sold in new Bukit Timah Turf City estate
[SINGAPORE] The tender for the maiden government land sales (GLS) site in the new Bukit Timah Turf City estate drew a strong turnout, with nine bids.
On offer at Thursday’s (Jun 26) exercise was a 99-year leasehold private housing site in Dunearn Road, near the Sixth Avenue MRT station, that can generate about 380 units.
The participation rate was higher than the forecast of up to six bids made by analysts polled by The Business Times earlier this week, before the Urban Redevelopment Authority (URA) unveiled its Draft Master Plan 2025 on Wednesday.
The top bid of S$491.5 million or S$1,410 per square foot per plot ratio (psf ppr) came from a Frasers Property, Sekisui House and CSC Land tie-up, and was within the analysts’ range of expectations.
The consortium’s offer was 3.7 per cent above the second-highest bid of S$1,360 psf ppr from City Developments. Moreover, the top five bids were tightly banded within a 10 per cent range, reflecting consensus on the site’s attractiveness, said CBRE’s head of research for Singapore and South-east Asia, Tricia Song.
The nine bids marked the best turnout for a private residential site (excluding executive condominium plots) at a GLS tender since September 2021, when two smallish sites in Slim Barracks in the one-north area each drew 10 bids.
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Huttons Asia CEO Mark Yip said the Draft Master Plan announcement provided “more clarity on the land usage in Turf City, reducing risks for developers”.
Property consultants also attributed the keen interest from developers to an opportunity to gain a first-mover advantage in a new estate.
Justin Quek, chief executive officer of OrangeTee & Tie, said: “There may be keen homebuyer demand for the project on this site as future residents will be able to enjoy the locational attributes of living in Bukit Timah and also benefit from the ongoing development of Turf City and the new amenities added over time.”
“The land parcel is near some top schools in Bukit Timah, which may add to pent-up demand from families with school-going children in the future,” he added.
PropNex head of research and content Wong Siew Ying highlighted that “Dunearn Road may be perceived as a prestigious residential address as it is near Good Class Bungalow areas”.
Moreover, the 380-housing-unit yield from the site presents a relatively manageable project size.
Soon Su Lin, CEO of Frasers Property Singapore, said on behalf of the consortium that placed the top bid: “Given that the last GLS site in the vicinity was awarded nearly a decade ago, we believe quality developments, specifically in the prime districts 9, 10 and 11, will continue to be highly attractive to homebuyers due to their locational attributes.”
PropNex projects the average selling price for the project on the Dunearn Road site to be “above S$2,900 psf”.
Putting the latest tender result in perspective, Song of CBRE said the top bid was about 8 per cent lower than the S$1,540 psf ppr garnered in December 2017 by the Fourth Avenue Residences site, next to the Sixth Avenue MRT station.
“The lower land price for the Dunearn Road site reflects a changed environment today – including higher construction costs and a reduction in saleable area for condo projects arising from the harmonisation of floor area definitions.”
She added: “The higher Additional Buyer’s Stamp Duty rates on investors, foreign buyers and even on housing developers – should they fail to sell out their project within the stipulated deadline – is an additional consideration.”
Also bidding at Thursday’s tender, which was conducted by URA, were a partnership between Sim Lian Land and Sim Lian Development (with a bid of S$1,329 psf ppr); and a tie-up involving UOL, Singapore Land and Kheng Leong Company (S$1,301 psf ppr).
Intrepid Investments teamed up with TID Residential for an offer of S$1,280 psf ppr.
China Overseas Land & Investment (Coli) Singapore was the sixth-highest bidder, at S$1,251 psf ppr.
Other bidders included a unit of Sustained Land (S$1,162 psf ppr) and Kingsford Group (S$1,102 psf ppr).
The lowest bid, S$949 psf ppr, was from Wee Hur Development.
Developers will have another land-buying opportunity in the locale in the near future. An adjoining plot, zoned residential with commercial at first storey, is slated for launch in December under the confirmed list of the second-half 2025 GLS programme announced earlier this month. It can generate 335 private homes and 1,400 square metres gross floor area of commercial space.
The government has planned for 15,000 to 20,000 public and private housing units for Bukit Timah Turf City.
Apart from the two GLS sites in Dunearn Road, there are three white sites and more than 20 residential plots (including those with commercial at first storey) that could be made available under the Draft Master Plan 2025, PropNex noted.
“The plans outlined will establish Bukit Timah Turf City as a self-sustaining neighbourhood with a mix of commercial offerings, healthcare amenities, as well as a school,” said PropNex chief executive officer Ismail Gafoor.
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