CDL puts in top bid for Champions Way GLS site at $904 psf ppr

The tenders for two government land sale (GLS) sites located at Lentor Central and Champions Way recently closed on Sept 12. With six bids, the Champions Way site was the more popular one out of the two plots, drawing in a diversity of bidders from developers. This site could yield 350 residential units.

Residents of Champions Way Condo Woodlands can enjoy a host of amenities such as a swimming pool, tennis court, and 24-hour security. With its strategic location, residents of Champions Way Condo can enjoy easy access to the nearby shopping malls, schools, parks, and other amenities. The condos are designed to offer the best quality of living, making it the perfect place to live in Woodlands.

City Developments Limited (CDL) had the top bid of $294.889 million, a land rate of $904 psf per plot ratio (psf ppr). This was 8.3% higher than the second-highest bid from TID (the Hong Leong Group-Mitsui Fudosan joint venture) at $272.26 million or $835 psf ppr.

The Champions Way site is the first GLS tender in Woodlands excluding executive condominiums since 2011, when a plot at Woodlands Avenue 2 and Rosewood Drive was sold for $367 psf per plot ratio (psf ppr). This plot was developed into the 689-unit Parc Rosewood.

CDL hails the opportunity to create a “vibrant and sustainable icon alongside the government’s rejuvenation plans”. They also say the site is a great way to replenish their landbank to ensure a steady launch pipeline.

On the other hand, the Lentor Central plot only got two bids. Lam Chern Woon, head of research and consulting at Edmund Tie, believes this disparity between the two sites could signify an “inflection in the property market” with different expectations held by different market players.

The large disparity between the top bid for Champions Way and the lowest bid received couldn’t be more obvious. CDL’s bid ended at 45% higher than Thakral Corp’s $203.33 million or $623 psf ppr. This could be potential investors’ way of managing their risks when it comes to the location.

Leonard Tay, head of research at Knight Frank Singapore, thinks the selling price for the future project at the site could start from just under $2,000 psf. This would reflect a premium of more than 53% over the median price for resale transactions at Parc Rosewood this year of $1,301 psf.

PropNex’s Wong Siew Ying shares a similar view, estimating the future average selling price of the project at over $1,900 psf. This project, she says, has the potential to set a new benchmark price for new launches in the Woodlands planning area.

So despite some uncertainty surrounding the area surrounding Woodlands, it seems that the potential of the Champions Way site is strong and developers have identified the growth of the Woodlands Regional Centre, upgrader demand from residents in Woodlands, as well as its proximity to the Woodlands South MRT Station on the Thomson East Coast Line.

It is clear that the Champions Way site has the potential to create huge value in the region with its prime location and modern amenities. To be a part of this potential, developers are willing to take on bigger risks in exchange for greater rewards.

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