SINGAPORE – The release of the Draft Master Plan 2025 appears to have reignited developers’ interest in banking land for development, as borne out in part by strong bids for a Bukit Timah Turf City plot on June 26.
That tender exercise, which drew nine bids and better-than-expected bid prices – the most for a Government Land Sales (GLS) site since 2021 – was one of the most hotly contested tender exercises in the last four years.
Analysts had said Bukit Timah Turf City was identified as one of the key housing areas in the recently unveiled draft masterplan, pointing out that developers were likely jostling for a stake in the area.
Interest in the Turf City site also comes after developers seemed to be showing growing caution in bidding for GLS tenders over the past year, in the face of higher construction costs, patchy home-buying demand and an uncertain economic outlook.
Demand for land depends on a range of factors, including the health of the economy and job market – which affects housing demand – and the attributes of each site.
Now, the draft masterplan could give public land sales a much-needed shot in the arm. It will provide developers with greater clarity on the Government’s future development plans in certain areas, which could help these firms decide which sites to pick.
Some of the areas highlighted by the draft masterplan which could draw interest from developers include the new Dover-Medway housing district, Paya Lebar Air Base (PLAB), and the Newton and Defu areas.
The Dover-Medway neighbourhood in the greater one-north area could see 6,000 new public and private homes built for starters, while some 5,000 new private homes could be introduced in Mediapolis, which is also in the area.
This new district has strong selling points, including a ready pool of HDB upgraders in nearby Queenstown, proximity to the one-north and Kent Ridge MRT stations and the knowledge hub spanning from Mediapolis to the National University of Singapore.
When asked, URA said development in the western section – where the bungalows in Medway Park are located near University Town (U Town) – will take place only in the longer term, adding that the authorities will study the plans in more detail in the coming years.
In the Newton area, some 5,000 new private homes could be built, while Paterson – on the doorstep of Orchard Road – could get 1,000 new private homes.
Under the draft masterplan, the planned Newton neighbourhood will comprise three clusters in Newton Circus, Scotts Road and Monk’s Hill.
In particular, residential sites on top of Newton and Orchard MRT stations have been rezoned as white sites in the draft masterplan, which could make these areas more appealing to developers.
White sites are land parcels designated for mixed-use development, and allow for flexibility in development plans.
Signalling that the authorities have taken in public feedback, CBRE noted that the draft masterplan focuses on more flexible use of land sources by adopting more white sites and business-white sites – which will offer a mix of industrial and non-industrial uses – while embracing vibrant mixed-use districts for new housing areas.
More flexible land use means that developers can mitigate development risk by building more commercial projects for long-term investment, said Professor Sing Tien Foo, NUS Business School’s provost chair professor of real estate.
That said, land-banking interest could vary by location.
For example, Paterson and Newton are prime areas for the luxury housing segment, which has been hit hard by the 60 per cent additional buyer’s stamp duty rate for foreigners.
Even though mixed-use developments are planned for these sites, developers will have to assess whether the new projects can generate additional prime housing demand, said Ms Catherine He, head of research at commercial real estate services firm Colliers.
Meanwhile, PLAB is being studied for future housing needs, and the number of homes planned for Defu, which is located next to the airbase, is not yet known.
As this strategic area is likely to be developed in phases in the long term, sites there could appeal to developers keen to get a first-mover advantage in the area, Ms He said.
PLAB could also attract developers with commercial or industrial expertise as there will likely be some integration with the surrounding business hubs, she added.
As the draft masterplan takes shape over the next decade, it will likely spark home owners’ interest in the new neighbourhoods, which in turn, would spur developers to channel investments in these precincts, ERA Singapore’s key executive officer Eugene Lim said.
But ultimately, it will take the combined effort of both the Government and developers to bring the masterplan to life.
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