A joint venture (JV) between City Developments (CDL) and Hong Leong Group have submitted the top bid of $542.4 million for the 59,349 sq ft government land sales (GLS) site at Peck Hay Road, translating to a land rate of $1,865 psf per plot ratio (ppr). The tender, which closed on June 11, attracted three other bidders.
Through their 80:20 joint venture, CDL and Hong Realty plan to develop a 39‑storey tower housing around 380 residences, higher than the 315 units indicated by URA when the site was launched in April.
The site is “strategically located” within the prime Newton residential enclave, says CDL group CEO Sherman Kwek. “Given the site’s close proximity to Orchard Road, excellent MRT connectivity and access to key amenities, the project is well-positioned to meet the aspirations of discerning homebuyers.”
Spanning approximately 59,347 sq ft, the site is located in the Newton planning area in District 9.
Kwek adds: “As Newton evolves into a distinctive mixed-use urban precinct with enhanced green connections, public spaces and heritage elements, we look forward to shaping the precinct’s next phase of transformation with a distinctive residential landmark that is thoughtfully integrated with the wider urban fabric.”
The top bid is 2.5% higher than the $1,820 psf ppr land bid for a nearby Bukit Timah Road site next to Newton MRT Station in a tender that closed in November 2025.
See also: First Jurong East EC site in 30 years could draw ‘strong interest’
It also marks the second-highest land rate in history for a residential GLS site in the Core Central Region (CCR), following the Cuscaden Road plot sold at $2,377 psf ppr in May 2018, according to PropNex. That site now houses the 192-unit Cuscaden Reserve.
The JV beat out three others with a top bid 8% above the second‑highest bid, which came from Sunway MCL and CSC Land Group (Singapore).
The top bid is also 18% higher than the third and fourth bids, submitted by a unit of China Overseas Land & Investment and the Intrepid Investments-TID Residential joint venture, respectively.
The more “subdued participation compared with eight bids for [the] nearby Bukit Timah Road GLS site [is] likely due to higher land cost benchmark and additional development costs”, says DBS Group Research.
The neighbouring Bukit Timah Road GLS site was recently awarded to HH Investment, linked to the Liao family of Taiwan’s Huang Hsian Construction Corporation, with a top bid of $1,820 psf ppr.
DBS estimates the developer's breakeven price at “around $3,200 to $3,300 psf”, implying that launch prices “could be in the mid- to high-$3,000 psf range”.
DBS adds: “At these levels, the project is likely to test the depth of demand for CCR residential developments, albeit supported by its attractive location, strong connectivity and proximity to primary schools.”
The Peck Hay Road site forms part of the Urban Redevelopment Authority’s (URA) plans for a new neighbourhood in Newton, which will add about 5,000 new homes around Newton Circus, Scotts Road and Monk’s Hill, transforming Newton into a mixed-use “urban village”.
Buyer demand
The area is experiencing a “supply shortage” owing to the lack of GLS sites in recent years, leading to “pent-up demand” for non-landed homes in the Bukit Timah and Newton areas, says Marcus Chu, CEO of ERA Singapore.
“Steady absorption” of new homes in the CCR has brought unsold new homes down to about 900 units, below the 1,569 units in the Rest of Central Region (RCR) and the 1,312 units in the Outside Central Region (OCR), says Justin Quek, deputy group CEO of Realion Group (OrangeTee & ETC).
There has been evidence of revived interest in well-located and well-priced CCR launches, says Tricia Song, CBRE head of research, Singapore and Southeast Asia.
In 2025, River Green (524 units) was 88% sold at average price of $3,130 psf, and Skye at Holland (666 units) was 99% sold at average price of $2,953 psf during their launch weekends.
In 2026, River Modern (455 units) was 90% sold at average price of $3,266 psf during its launch weekend.
Huttons Asia’s CEO, Mark Yip, adds that the Singapore government’s plans to attract overseas ultra-high-net-worth individuals and bring in up to 70,000 high-quality new citizens and permanent residents annually will drive demand for new CCR homes.
In 1Q2026, foreign purchasers accounted for 28 new non-landed home transactions in the CCR, up from 16 units in the 4Q2025. “Although transaction volumes remain relatively modest, the increase suggests that demand from foreign buyers has not disappeared entirely and could gradually improve should global uncertainties persist,” says Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc. (SRI).
That said, the fact that the top bid remained competitive despite the lower number of participants suggests that developers “continue to have confidence” in the long-term fundamentals of prime residential locations, adds Sandrasegeran. “Well-connected city-fringe and central area sites such as Peck Hay Road remain relatively scarce and continue to offer attractive redevelopment opportunities, particularly when supported by longer-term transformation plans for the surrounding precinct.”
According to CBRE, the closest 99-year comparable is Kopar at Newton, which has a similar scale of 378 units, and was launched in March 2020. There have been 12 resale transactions in 2026 so far at a median price of $2,538 psf.
Another newly completed nearby project is Pullman Residences Newton, which is freehold, also of similar scale with 340 units, which has seen only two transactions in 2026 so far at a median price of $3,011 psf.
Read about this year's GLS tenders:
URA launches Berlayar Drive and New Upper Changi Road GLS sites (May)
Holland Plain GLS site in D10 draws sole bid from Sim Lian (May)
Dunearn Road GLS site draws six bids; Wing Tai-Metro consortium on top with $1,625 psf ppr bid (April)
River Valley Green (Parcel C) GLS site in popular Great World area could ‘pique developer interest’ (April)
Peck Hay Road GLS site in Newton could draw up to eight bids: analysts (April)
Frasers Property-Mitsubishi Estate JV tops four bids for Kallang Close GLS site at $1,415 psf ppr (April)
Large 5.74ha Bayshore Drive mixed-use GLS site could draw $2 bil top bid: analysts (March)
Qingjian Realty, joint venture partners top Dover Drive GLS bid with $1,556 psf ppr (March)
URA launches GLS site at Holland Plain, with up to six bidders expected (February)
CDL-Woh Hup JV places top bid for Tanjong Rhu GLS site, beating out four others (February)
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