Peck Hay Road GLS Site Sold For $542.4 Million: Future Newton Condo Could Launch Close To $4,000 PSF

City Developments Ltd (CDL) and its joint venture partner, Hong Realty (a subsidiary of Hong Leong Holdings), have submitted the top bid of $542.4 million for the residential government land sale (GLS) site at Peck Hay Road in Newton.

Their bid price for the 59,347 sq ft site works out to a land rate of $1,865 psf per plot ratio (ppr). This is the second-highest price that a developer has tendered for a Residential zoned GLS site to date.

The record land price of $2,377 psf ppr was submitted by a SC Global-led consortium for a GLS site on Cuscaden Road site in May 2018. That site has since been developed into the 192-unit luxury development Cuscaden Reserve.

According to a media statement issued by CDL and Hong Realty, the developers say that if they are awarded the site, they plan to develop it into a new 36-storey residential development with approximately 380 units. The CDL-led joint venture (JV) is structured on an 80:20 equity split.

Located in prime District 9, the GLS site is about 200m from Newton MRT Interchange on the North-South and Downtown Lines. The site will also front a planned extension of Peck Hay Road that will connect through to Scotts Road.

The plot has a gross plot ratio of 4.9 and a maximum permissible gross floor area (GFA) of 290,808 sq ft. This is the first GLS site released by the government as part of a wider master plan to transform the Newton area into a mixed-use ‘urban village’.

This was unveiled with the 2025 Master Plan and will see an additional 5,000 new homes around Newton Circus, Scotts Road, and Monk’s Hill.

Sherman Kwek, Group CEO of CDL, referenced Newton’s upcoming transformation and the part private developers will play in it. “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,” he says.

He adds that if the JV partners are awarded the site, the new development is well-positioned to meet the aspirations of prospective homebuyers, given the site’s close proximity to Orchard Road, excellent MRT connectivity, and access to key amenities.

Four bids, two-tier outcome

At the close of the tender on June 11, the GLS site on Peck Hay Road attracted four bids. This was less than the estimated developer participation initially put forward by some market watchers.

The relatively modest developer participation in this tender could be the result of the ongoing robust pipeline of new launch-ready developments and planned GLS sites, rather than an indication of weak demand for the site, says Mohan Sandrasegeran, head of research & data analytics at SRI.

The newest line-up of GLS sites for the second half of 2026 was unveiled by the government last week. In total, the nine sites on the Confirmed List will add 4,745 new private residential units – an increase of 3.7% compared to the 4,575 units that made up the Confirmed List in 1H2026.

If all of the sites on the Confirmed List in 2026 are awarded, this means that about 9,320 new private residential units are set to enter the market over the next two years, and it is one of the highest annual supply levels in recent years. 

“With a larger pipeline of sites available, developers may feel less pressure to secure every land parcel that comes to market,” says Sandrasegeran. He adds that some developers may adopt a more disciplined and selective approach, “focusing on sites that best complement their existing land banks, product strategies and target buyer segments”.

On the other hand, Marcus Chu, CEO of ERA Singapore suggests that several developers may already have their eye on a more appealing GLS site that will be closing in the next few days. The tender for a plum site at River Valley – River Valley Green (Parcel C) – is expected to close next Thursday, on June 18. This is the third new GLS site on the 1H2026 Confirmed List.

“Some developers may have had to evaluate their bidding strategy across the two sites. The competition between the two concurrently open CCR sites could have led to more moderate bidding activity,” says Chu.

The gap between the top bid by CDL and Hong Realty for the Peck Hay Road site, and the lowest bid by Hong Leong Holdings and TID is 18%.

This is a wider price gap compared to the 8.9% spread for the Dunearn Road GLS site in April this year, but narrower than the 38.8% spread for a Bukit Timah Road GLS site that closed in November 2025.

If we examine the land bids put in by developers for the Peck Hay Road GLS site, it suggests some developers may have split views on what is a reasonable land rate for a 99-year leasehold development site in Newton.

There is a difference of $137 psf ppr between the $17,20 psf ppr bid price submitted by Sunway MCL and CSC Land Group, compared to the $1,583 psf ppr bid from COLI. This Chinese developer also participated in the bid for the Dunearn Road GLS site, putting in a $1,530 psf ppr bid price at the time.

To give further context to the direction of how land prices in Singapore have moved in recent months, CDL’s top bid of the Peck Hay Road GLS site is 2.5% above the $1,820 psf ppr that HH Investment paid for the Bukit Timah Road site in November 2025. That had been the record land price for a GLS site in the CCR.

Record land rates continue to climb even as developer participation in land bids thins

If we take a look at the direction that land prices have moved in recent months, it suggests a rising trajectory. The top land rate has climbed from $1,410 psf ppr a year ago, to $1,820 psf ppr in November, and now $1,865 psf ppr even as overall developer participation in land tenders has moderated.

Most market analysts opine that developers are deploying their capital more selectively, with a greater focus on sites where the buyer pool is most clearly defined.

Justin Quek, Deputy Group CEO of Realion (OrangeTee & ETC) Group, points to developer sales data for April 2026, which puts launched-but-unsold inventory in the Core Central Region (CCR) at about 900 units, below the 1,569 units in the Rest of Central Region (RCR) and 1,312 in the Outside Central Region (OCR).

Steady take-up rates at Newport Residences, River Modern and River Green have worked through most of the excess unsold supply of new units in the CCR at a faster rate compared to the other two regions.

As the volume of unsold new private homes dwindles, especially in the CCR, there are few options available for buyers and investors who would still like to own property in the central region. This catchment of buying demand likely contributed to the CDL-Hong Realty strong bid price of $1,865 psf ppr.

How will buyers react to a possible launch price of over $3,400 psf, with Newton’s transformation still on paper?

Based on the typical cost of a new residential development, a land rate of $1,865 psf ppr could see an average launch price of more than $3,300 psf. And this will likely be closer to the range of $3,500–$3,800 psf, in order for most developers to cover construction and financing costs in line with recent CCR launches. 

But some market analysts like Wong Siew Ying, head of research and content at PropNex, estimate that the new project could see an average selling price of above $3,400 psf.

Others, like Leonard Tay, head of research at Knight Frank Singapore, put the possible launch price higher between $3,700 to $3,900 psf, depending on how the developer designs and schedules the launch against prevailing market conditions in about a year’s time.

At this price range there are some comparables in the market. For example, Park Nova on Tomlinson Road has recorded a median price of about $4,700 psf, with some of the top floor units transacting for more than $6,500 psf.

Some units at Cuscaden Reserve have fetched approximately $3,000 psf, and recent caveated deals there this year start from about $3,200 psf. CDL’s newest project in the CCR is Newport Residences on Anson Road, where some units have transacted for around $3,100 psf after the project debuted at the start of this year.

Granted, the upcoming development has several appealing attributes that would support a confident pricing strategy. It’s desirable location in the Cairnhill pocket of District 9, close to a major MRT interchange, as well as the growth prospects of a new mixed-use precinct. However, this early mover comes with the fact that nearly all of the precinct’s planned community facilities, green corridors or road extensions are still in the works.

A first-mover position with a school catchment that thins from 2030

There are other moving pieces in the Newton area taking place. The Peck Hay Road GLS site is within 1km to Anglo-Chinese School (Junior) on Winstedt Road and Anglo-Chinese School (Primary) on Barker Road. 

ACS (Primary) is the school that relocates to Tengah in 2030 as part of the Ministry of Education’s consolidation plan, at which point ACS (Primary) becomes co-ed and exits the Barker Road campus. ACS (Junior) at Winstedt stays in place through 2030, before consolidating with the Barker Road site in 2033 ahead of a longer-dated reconfiguration around 2039.

Other well-known schools in the vicinity include St Margaret’s School (Primary), Singapore Chinese Girls’ Primary and St Joseph’s Institution Junior.

Prospective buyers eyeing the Newton area, and CDL’s upcoming project there, should be aware that the relocation plans may mean that the pool of buyers may shrink as ACS (Primary) leaves Barker Road. ACS (Junior) will still be within 1km until the new project’s estimated completion, but the headline school name that has historically anchored CCR family demand in this corridor is on its way out by the time the eventual development is built. 

What to watch next

We expect URA will announce a decision to award the Peck Hay Road site in the coming days. 

Until then, we’ll be watching out for the launch of the new project by HH Investment at the Bukit Timah Road site next to Newton MRT, which it won after putting in the top bid of  $1,820 psf ppr in November 2025. The launch of that project, which could take place at the end of this year or in 2027, will set the benchmark for a new 99-year leasehold project in the vicinity.

We’ll also monitor the tender for the River Valley Green (Parcel C) next week, which will mark the third and final CCR site on the Confirmed List of the 1H2026 GLS programme.

Other upcoming CCR sites for sale include one along Orchard Boulevard and another site on Holland Plain. So next week’s tender result will be the last CCR price signal of this half of the year before the land supply crunch turns developers more selective again.