The tenders for two Government Land Sales (GLS) sites at Jalan Tembusu and Lentor Hills Road (Parcel A) closed tonight.
Singapore-listed property developer City Developments (CDL) emerged as the top bidder among eight for the Jalan Tembusu site, located in the prime District 15 along Tanjong Katong Road. CDL’s bid was S$768 million, which translates to S$1,302 per square foot per plot ratio (psf ppr).
CDL Group CEO Sherman Kwek stated that this acquisition will add more than 600 units to CDL’s residential inventory. He said: “We have launched and developed a wide variety of projects in the nearby area, including Amber Park, which is nearly 90% sold. This is an excellent opportunity to expand our presence in this area and create another lasting icon.” The Jalan Tembusu site has the potential to yield 640 units.
CDL’s parent company, Hong Leong Holdings, Hong Realty, and TID placed the second-highest bid at S$712.6 million (S$1,208 psf ppr).
Ong Teck Hui, Senior Director of Research & Consultancy at JLL, commented: “The Jalan Tembusu site in District 15 is a more attractive location and drew a stronger response. The number of bidders and the top bid are at the higher end of expectations, considering the latest cooling measures.” The project is located near the upcoming Tanjong Katong MRT station; popular schools such as Tanjong Katong Primary School and Canadian International School (Tanjong Katong Campus); and eateries in the Katong area and East Coast Park. He added: “The strong attributes of the area will attract many homebuyers.”
AnjiaSG property agent Leo Kwek pointed out that developers likely factored in the potential supply in the area. A short walk away is the site at Thiam Siew Avenue, which was sold en bloc last November for S$815 million to a joint venture between Hoi Hup Realty and Sunway Developments. The two plots flanking Thiam Siew Avenue can be redeveloped into two private condominiums with 800 units. Factoring in development charges and the 7% bonus balcony area, the price translates to S$1,440 psf ppr.
Meanwhile, another GLS site at Dunman Road is also scheduled for tender in March.
AnjiaSG’s agent Leo Kwek estimates that the selling price for the new project at Jalan Tembusu could range from S$2,300 to S$2,400 psf.
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