New Development 5 Minutes from Newton MRT Incoming! Launch Prices Could Hit $3,900 PSF

CDL-Hong Leong Consortium Clinches Peck Hay Road GLS Site for $542M

The highly anticipated Peck Hay Road Government Land Sales (GLS) tender closed on 11 June, drawing bids from four developers.

Ultimately, a joint venture between City Developments Limited (CDL) and Hong Leong Group's Hong Realty emerged victorious with the top bid of $542.4 million, translating to a land rate of approximately $1,865 per square foot per plot ratio (psf ppr).

This winning bid was about 8.4% higher than the second-highest offer, reflecting the developers' strong confidence in the site's growth potential.

Coming in second was a consortium comprising Sunway MCL Land and CSC Land Group with an offer of $500.19 million, or $1,720 psf ppr.

The third and fourth highest bids were submitted by China Overseas Land & Investment and a tie-up between Hong Leong Holdings and TID, at $1,583 psf ppr and $1,580 psf ppr respectively.

Plans for a High-Rise Residential Development of Around 380 Units

Upon completion of the land acquisition, CDL and Hong Realty plan to develop a 39-storey residential tower on the site, expected to yield around 380 private residential units.

CDL noted that the Peck Hay Road site enjoys a prime location in the heart of the established Newton residential enclave.

Apart from its proximity to the Orchard Road shopping belt, the project benefits from comprehensive MRT connectivity and mature lifestyle amenities, making it highly appealing to discerning homebuyers and investors.

The developer further highlighted that under the Urban Redevelopment Authority's (URA) master plan, Newton will gradually transform into an integrated urban community blending lush greenery, public amenities, and heritage elements. The Peck Hay Road development is poised to become a prominent residential landmark within this rejuvenation master plan.

Land Rate Surpasses Bukit Timah Road GLS Site

Notably, the transacted land rate has surpassed that of the Bukit Timah Road GLS site awarded in November last year.

That site was secured by HH Investment, an affiliate of Taiwanese developer King's Town Construction, at $1,820 psf ppr.

At $1,865 psf ppr, the Peck Hay Road site stands approximately 2.5% higher.

The transaction price of the Bukit Timah Road site effectively provided a key benchmark for Peck Hay Road, meaning the comparable pricing came as no surprise to the market.

The close land rates between the two sites will help anchor market expectations for future launch prices of new projects in the Newton precinct.

Why Did Only Four Developers Bid?

Compared to the Bukit Timah Road site which drew eight bids last year, the Peck Hay Road tender saw just four submissions.

A primary factor is that another Core Central Region (CCR) site, River Valley Green (Parcel C), is currently out for tender, closing shortly on 18 June.

Some developers likely had to choose between the two prime CCR parcels, prompting a more measured bidding strategy.

Heightened geopolitical tensions in the Middle East and ongoing global macroeconomic uncertainties may have also weighed on tender participation.

In the current environment, developers are prioritising cash flow and balance sheet resilience to navigate potential headwinds.

Future Launch Prices Projected to Exceed $3,400 psf

With the land rate setting a new benchmark for the immediate area, market watchers broadly expect future launch prices to be noticeably above existing residential developments in Newton.

If the developer executes well on product positioning, unit layout design, and launch timing, average selling prices could potentially reach between $3,700 and $3,900 psf.

Why Are Developers Turning Bullish on the CCR Again?

Developer appetite for CCR land has rebounded significantly over the past 18 months. Over this period, CCR GLS tenders drew an average of 5.7 bids, noticeably higher than the average of around three bids seen in 2024.

The biggest catalyst behind this revival has been the stellar sales performance of several recent CCR launches: River Green sold 88% of its units during its launch weekend last August; Skye at Holland achieved a 99% take-up rate in October; and River Modern moved 90% of its units upon launch this March.

These robust sales results have substantially bolstered developer confidence in prime central residential property.

CCR Unsold Inventory Falls Below RCR and OCR

According to URA data as of April 2026, there are only around 900 launched yet unsold new private homes in the CCR.

In contrast, the Rest of Central Region (RCR) has 1,569 unsold units, while the Outside Central Region (OCR) sits at 1,312 units.

In other words, unsold new home inventory in the CCR has now become the leanest among the three market segments.

Against a backdrop of steady demand and tight inventory, developers are increasingly keen to secure prime CCR land parcels.

Foreign Buyer Demand Gradually Returning

Despite the prevailing Additional Buyer's Stamp Duty (ABSD) headwinds, foreign buyers have not vanished from the market entirely.

Data reveals that the CCR recorded 28 non-landed private residential purchases by foreign buyers in Q1 2026, up from 16 transactions in Q4 2025.

While overall transaction volumes remain modest, early signs of recovery are emerging.

Should global geopolitical uncertainties persist, Singapore's appeal as a trusted safe-haven asset destination could strengthen further.

At the same time, the national policy welcoming around 70,000 highly qualified new citizens and permanent residents annually will continue to underpin high-end residential demand.

Future CCR Supply Set to Tighten Further

Alongside recovering demand, a tighter future pipeline is another key driver behind competitive bidding.

Under the 2H2026 GLS programme, only two residential sites were rolled out in the CCR, expected to yield an estimated 720 units.

This represents an approximate 32% decrease from the 1,065 units introduced in 1H2026.

This tightening supply pipeline will provide further support for CCR home prices going forward.

Newton Poised for Transformation into an 'Urban Village'

The most compelling long-term upside for Peck Hay Road stems from precinct-wide master planning enhancements.

Under the URA Master Plan 2025, the area surrounding Newton MRT station will be reimagined as a vibrant new "Urban Village".

Around 5,000 new residential units are slated for the Newton Circus, Scotts Road, and Monk's Hill precincts.

The neighbourhood will feature more mixed-use developments, civic spaces, and community amenities, integrating seamlessly with the iconic Newton Food Centre to create a holistic urban ecosystem.

Positioned right at the centre of this rejuvenation, the Peck Hay Road site is well-placed to become an integral component of Newton's refreshed urban landscape.

How Are Surrounding Projects Performing?

The closest 99-year leasehold comparable to Peck Hay Road is Kopar at Newton. Launched in 2020 with 378 units, it is of a similar scale to the upcoming development. To date in 2026, it has registered 12 resale transactions at a median price of around $2,538 psf.

Another nearby development is the freehold Pullman Residences Newton. Comprising 340 units, it has recorded two transactions this year at a median price of roughly $3,011 psf.

Older 99-year leasehold projects in the vicinity—including Orchard Scotts, Rochelle At Newton, and Amaryllis Ville—have seen transactions this year ranging between $1,928 and $2,067 psf.

Meanwhile, Upperhouse at Orchard Boulevard along Orchard Boulevard has moved 240 units since its launch in July 2025, representing about 79.7% of the development, achieving a median transacted price of $3,317 psf.

The healthy sales momentum across these developments serves as an important pricing reference for the upcoming project on Peck Hay Road.

Conclusion: Is the CCR Market Entering a New Cycle?

The Peck Hay Road land parcel being awarded at $1,865 psf ppr not only underscores developers' long-term confidence in Newton, but also signals a broader re-evaluation of CCR residential demand.

With dwindling inventory, tightening future supply, the gradual return of foreign buyers, and stellar sales across new CCR launches, the prime market appears to be moving past the wait-and-see sentiment that defined the past two years.

For property investors, this tender outcome is more than just another land sale—it may well serve as a bellwether for the start of a fresh cycle in the CCR market.