Wins Singapore Land Tender at Chuan Grove

Sunway, through a joint venture (JV) with Sing Holdings Residential Pte Ltd (35:65 shareholding), has successfully secured a 15,831.5 sqm land parcel at Chuan Grove, Singapore, for SGD703.6mn (approximately RM2.34bn). The 3.9-acre site, awarded by the Urban Redevelopment Authority (URA), carries a 99-year lease term. Based on the maximum allowable gross floor area (GFA) of 47,495 sqm, the winning bid translates to SGD1,376 per square foot per plot ratio (psf ppr).

The Chuan Grove tender, which closed on 8 July 2025, garnered strong competition with seven bids submitted. The Sunway-Sing Holdings JV emerged top with a bid 7.3% above CDL’s offer, while Sim Lian Group trailed by just 0.1%. Kingsford, developer of Chuan Park (launched in November 2024), ranked fourth at SGD1,251 psf ppr – see Appendix 1.

Separately, a nearby plot with a potential yield of 505 units was launched for tender in May, with submissions closing on 4 September – see Appendix 2.

Prime Location with Strong Connectivity

The site is located along Chuan Grove off Lorong Chuan in District 19. Spanning 170,409 sq ft, this 99-year leasehold parcel is conveniently situated within 400 metres of Lorong Chuan MRT Station on the Circle Line, providing easy access to the Bishan and Serangoon MRT interchanges just one stop away. By 1H 2026, the completion of additional stations between Harbour Front and Marina Bay will fully close the Circle Line loop, further enhancing connectivity. The site is also near the Central Expressway (CTE), allowing a 10-minute drive to Singapore’s Central area.

Amenities include nearby malls such as NEX, Junction 8, Upper Serangoon Shopping Centre, and NTP+ at New Tech Park. The location is family-friendly, with St. Gabriel’s Primary School and Kuo Chuan Presbyterian Primary School within 1km, alongside international options like the Australian International School and Stamford American International School – see Appendix 3 & 4 for location of the site.

Residential Development Targeted for Launch in 1H2026

The land is earmarked for a high-rise residential development comprising three towers with approximately 550 units. The project’s development timeline spans 60 months, starting on 17 July 2025, with an official launch expected in 2H2026. The GDV for the project has not been determined yet.

(12-Mth) Share Price relative to the FBMKLCI. Source: Bloomberg

Our View

Positive on Sunway’s Expansion Drive in Singapore.

We view this successful tender as a strategic move that strengthens Sunway’s residential pipeline in Singapore. Notably, it marks Sunway’s first partnership with Sing Holdings, expanding its partnership base beyond its long-standing collaboration with Hoi Hup Realty.

The Chuan Grove site complements Sunway’s ongoing efforts to scale up its Singapore presence. Its current project pipeline includes:

• Private Condominiums: Terra Hill (launched in February 2023; 49% take-up), The Continuum (launched in April 2023; 72% take-up), and the Tampines site (targeted launch in 1H2026).
• Executive Condominiums (EC): Novo Place (launched in November 2024; 97% sold), and Otto Place (launching in July 2025).

Primed for Success: Strategic Location and Proven Market Demand

We believe Sunway’s entry into Chuan Grove is well-positioned to capture demand, given the site’s prime location within the mature and established Serangoon planning area. The neighbourhood’s appeal is driven by its proximity to reputable schools, a wide range of amenities, excellent MRT connectivity, and limited new residential supply. These factors combine to make it a highly desirable address for homebuyers.

Additionally, the robust participation in the land tender, with the top four bids clustered within a 10% range, reflects broad developer confidence in the site’s value. Notably, the winning bid of SGD1,376 psf ppr ranks as the second highest Outside Central Region (OCR) land bid in 2025, just slightly below the SGD1,388 psf ppr benchmark set at Bayshore Road. This signal continued optimism for well-located OCR developments.

The strong sales performance of Chuan Park by Kingsford Group, just 200 metres from Chuan Grove, reinforces our positive view. Launched in November 2024, Chuan Park achieved 76% take-up during its launch weekend and has since reached 84% sales at a median price of SGD2,591 psf. With limited unsold inventory in the area and steady demand from HDB upgraders and potential downgraders from nearby landed estates Serangoon, Bishan, and Ang Mo Kio, we believe Chuan Grove is well-positioned to replicate this success.

Potential GDV of SGD1.2bn to 1.4bn.

We estimate Chuan Grove’s potential gross development value (GDV) at SGD1.2bn to SGD1.4bn. Based on a land cost-to-GDV ratio of 50-60%, this implies an indicative launch price of between SGD2,300 and SGD2,800 psf (see Figure 1).

Figure 1: Potential GDV

This range is broadly in line with Chuan Park’s recent transactions, where prices have remained resilient since its launch in November 2024. From January to June 2025, Chuan Park recorded average unit prices between SGD2,545 and SGD2,693 psf, with the highest transacted prices consistently exceeding SGD2,700 psf from April to June, reaching up to SGD2,766 psf (see Appendix 5).

Separately, property consultants expect new launches in the vicinity to start from SGD2,700 psf, with average selling prices potentially reaching between SGD2,900 and SGD3,000 psf, depending on specifications, finishes, and market conditions at launch.

Impact

No change to our FY25-27 earnings forecasts pending more details on the proposed development.

Valuation

We maintain Buy on Sunway with an unchanged TP of RM5.68/share, based on SOP valuation and a 5% ESG premium.

SOP Valuation Table