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Dairy Farm, located in District 23, has evolved from a quiet historical outpost into one of Singapore’s most sought-after residential enclaves. Its appeal lies in a unique "hybrid" lifestyle that combines rugged nature with modern convenience.
The latest tender for a Government Land Sale (GLS) land parcel site at Dairy Farm Walk closed today on 22 Jan 2026 (Thursday), drawing five bids from many well known developers. A consortium led by Roxy-Pacific Holdings, together with Macly Group, LWH Holdings and ABR Holdings, emerged as the highest bidder with an offer of $427 million, or $962 psf per plot ratio (ppr). Roxy-Pacific will also be the project manager for the site.
The latest Dairy Farm Walk GLS site was launched in November last year. It is the fourth residential plot launched for sale in the neighbourhood. Spanning a land area of 316,937 sq ft, the 99-year leasehold residential site is estimated to yield about 480 residential units.
Only 0.3% above the second-highest offer
The consortium’s bid was just 0.3% above the second-highest offer of $425.4 million ($959 psf ppr), submitted by a joint venture between GuocoLand and Hong Leong Holdings. The remaining bids came in at $410.9 million ($923 psf ppr), $377 million ($850 psf ppr) and $372.5 million ($840 psf ppr).
The third-highest bid of $926 psf ppr came from the same consortium that is previewing the 540-unit Narra Residences next door. Narra Residences was previewed on Jan 17 at prices starting from $1,930 psf and is slated for launch on Jan 31. The consortium led by Santarli Realty and Apex Asia, together with construction companies Soon Li Heng Civil Engineering and Kay Lim Realty, submitted the higher of the two bids received for the site when it closed in January 2025. Their bid was $504.52 million, or $1,020 psf ppr.
"This area has become a hotbed for developers due to the successful sell-out of recent projects like The Botany at Dairy Farm and Dairy Farm Residences." said Kiwi Lim, Associate Group Director of PropNex Realty, "Historically, the area was seen as "quiet but inconvenient." This changed with the introduction of Dairy Farm Mall, an integrated retail hub bringing convenience to the doorstep of the residents there."
The most significant draw is the immediate proximity to the Dairy Farm Nature Park and the Bukit Timah Nature Reserve. Residents have direct access to hiking and mountain biking trails like the Wallace Trail. Living next to over 3,000 hectares of greenery offers a cooler ambient temperature and significantly better air quality compared to the concrete-heavy city center.
5.7% lower than the land price paid for Narra Residences' site
The top bid land rate in this tender at $962 psf ppr is 5.7% lower than the land price paid for Narra Residences' site, as the latest site has a lower gross plot ratio of 1.4. This in turn, could have moderated land bids, notes Wong Siew Ying, head of research and content at PropNex. For context, the other four GLS residential sites awarded in the Dairy Farm area all have a higher gross plot ratio at 2.1.
The latest GLS site attracted the highest number of bidders since 2022, when another GLS site at Dairy Farm Walk drew seven bids. That 168,536 sq ft site was awarded to Sim Lian Group, which submitted the top bid of $347 million ($980 psf ppr). The site is being developed into the 386-unit The Botany at Dairy Farm. The project was launched at an average price of $2,070 psf and is fully sold, with recent transactions ranging between $1,929 and $2,165 psf, based on caveats lodged.
Real estate professional Kiwi Lim said "The drop in land price from $1,020 psf ppr (Plot 2) to $962 psf ppr (Plot 3) is likely due to the lower plot ratio (1.4 vs 2.1). A lower plot ratio means the developer has to build multiple low-rise blocks instead of a few high-rise ones, which increases construction costs per square foot (more lifts, more roofing, more foundations)."
Extracted from: EdgeProp News on 22 Jan 2026
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Photo from Straits Times
As of January 10, 2026, the Housing & Development Board (HDB) has introduced a new measure requiring successful bidders of HDB shops to commit to their tendered rent for six years (two 3-year terms), rather than the previous three years. This applies to those who successfully bid for any HDB shop, including coffee shops and medical facilities, to encourage prudent bidding.
Whether this reduces rental bids depends on the trade-off between risk and certainty. Here is the breakdown of how this policy is expected to impact bidding behavior:
The "Prudence" Effect (Likely to Reduce Bids)
The primary goal of the 6-year commitment is to encourage prudent bidding.
- Speculation Curb: Previously, some bidders would submit "eye-watering" high bids to secure a prime location, hoping to renegotiate or see the rent adjusted downward by a valuer at the 3-year renewal mark.
- Long-term Accountability: Now, bidders must live with their bid for 6 years. For smaller businesses, the risk of being "locked in" to an unsustainable rent for half a decade is a major deterrent, which should theoretically lead to more rational, conservative bidding.
The "Prime Location" Exception (Unlikely to Reduce Bids)
Analysts suggest that for high-footfall areas (e.g., shops near MRT stations or in new "Prime" and "Plus" BTO estates), the 6-year rule may not stop aggressive bidding.
- First-Mover Advantage: Large healthcare groups or well-funded chains often bid aggressively to "capture" a new estate’s market early. For them, a 6-year lease is actually an advantage as it provides long-term rental certainty and protection against sudden market spikes.
- Record Bids: In 2025, a record-high bid of $52,188/month for a Tampines GP clinic was received by HDB. For such high-margin businesses, securing the location is often more important than the rent cost.
Shift Toward "Price-Quality" Tenders
In tandem with the 6-year lease, HDB is moving away from purely price-based auctions.
- PQM (Price-Quality Method): For essential services like GP clinics, HDB now uses a scoring system where price only accounts for 40% of the score, while the "Quality" of the proposal (affordability, track record, community initiatives) accounts for 60%.
- Direct Result: This has already shown a significant reduction in awarded rents. For example, a clinic in Bartley was awarded at $16.70 psf, less than half the market average of $35.50 psf for purely price-based tenders.
"HDB understand the increasing concern over higher costs of living due to rising rental bids for HDB shops, coffee shops and medical facilities after a general practitioner’s clinic in Tampines placed a record-high bid at $52,188 a month in 2025 for a HDB shop." said Associate Group Director of PropNex Realty, Kiwi Lim.
"For the average neighborhood shop, you will likely see more sensible bidding as businesses weigh the 6-year risk. However, for "trophy" locations, aggressive bidding by large corporates is expected to persist."
