City Developments Ltd (CDL), in partnership with Hong Realty, has emerged as the highest bidder for the coveted Government Land Sales (GLS) site at Peck Hay Road, reinforcing developers' confidence in the long-term transformation of Singapore's Newton district.

The 80:20 joint venture submitted a top bid of S$542.4 million, translating to S$1,865.15 per square foot per plot ratio (psf ppr) for the 99-year leasehold site. The winning bid surpassed the second-highest offer by approximately 8.4 per cent, reflecting the consortium's strong conviction in the site's development potential.

Strong Vote of Confidence in Newton's Transformation

The Peck Hay Road site is the second GLS parcel released as part of the Urban Redevelopment Authority's (URA) ambitious masterplan to rejuvenate the Newton area into a vibrant mixed-use residential neighbourhood. Over the next 10 to 15 years, approximately 5,000 new private homes are expected to be introduced around Newton Circus, Scotts Road and Monk's Hill.

Although the tender attracted only four bids compared to eight for the neighbouring Bukit Timah Road GLS site last year, analysts believe the winning bid demonstrates continued optimism towards the Central Core Region (CCR) residential market.

Notably, CDL and Hong Realty's offer exceeded the nearby Bukit Timah Road GLS site's land rate of nearly S$1,820 psf ppr, achieved in November last year, by around 2.5 per cent.

A Landmark Residential Development

The consortium intends to develop a striking 39-storey residential tower comprising approximately 380 private homes, significantly higher than the 315-unit estimate initially indicated when URA launched the site for tender.

According to CDL Group Chief Executive Officer Sherman Kwek, the development aims to become a distinctive residential landmark that contributes to the next phase of Newton's transformation.

The project will feature extensive landscaping, lush greenery and thoughtfully designed communal spaces that promote urban liveability while complementing the evolving character of the neighbourhood.

Premium Pricing Expected

Property consultants expect the future development to be launched at an average selling price ranging between S$3,400 psf and S$3,900 psf, reflecting the site's prime location and limited supply of new homes in the prestigious Newton and Orchard precinct.

Recent successful launches within the CCR, including projects near Orchard Boulevard and Great World MRT station, have demonstrated sustained demand from both local and foreign buyers seeking premium city-centre residences.

Excellent Connectivity and Family Appeal

One of the key attractions of the Peck Hay Road site is its exceptional connectivity. Located just a short walk from Newton MRT Interchange, residents will enjoy seamless access to both the North-South and Downtown MRT lines, providing convenient travel across Singapore.

The development also enjoys close proximity to several highly sought-after schools, including:

• Anglo-Chinese School (Junior)

• St Joseph's Institution Junior

• Singapore Chinese Girls' School (Primary)

• River Valley Primary School

• St Margaret's School (Primary)

• Farrer Park Primary School

These educational institutions are expected to enhance the project's appeal among families seeking homes within established school catchments.

Additional Development Requirements

Beyond constructing the residential project, the successful developer will also undertake several public infrastructure improvements required under the tender conditions. These include:

• Building a covered pedestrian linkway to Newton MRT station.

• Constructing an extension of Peck Hay Road.

• Relocating an existing bus stop along Scotts Road.

• Widening part of Anthony Road.

While these additional works will increase overall development costs, industry observers note they will significantly enhance accessibility and improve the surrounding urban environment.

Outlook

The successful Peck Hay Road tender highlights continued confidence among major developers in Singapore's luxury residential market despite higher construction costs and a more selective bidding environment. As URA gradually rolls out thousands of new homes in the Newton precinct over the coming decade, the area is poised to evolve into one of Singapore's most attractive city-fringe residential districts.

With its prime location, excellent transport connectivity, proximity to renowned schools and comprehensive urban renewal plans, the future Peck Hay Road development is expected to become one of the most closely watched condominium launches in the Central Core Region over the next few years.