yields $2 billion
URA has released two residential sites located at Holland Drive and De Souza Avenue on the 2H2023 Government Land Sales (GLS) programme. Both sites come with a 99-year leasehold and can yield up to 1,035 residential units.
The Holland Drive parcel, located in prime District 10, might be the more attractive option due to its close proximity to the amenities provided at the One Holland Village mixed-use development and the Holland Village MRT station. With a land area of 133,330 sq ft and a maximum gross floor area (GFA) of 626,665 sq ft, it can be developed into a 680-unit project. PropNex’s Wong Siew Ying predicts that this site will not be triggered for sale due to its likely quantum price above $1 billion.
Developers could join forces in a consortium or use other strategies to bid for the site. Lee Sze Teck, senior director of Huttons Data Analytics, noted the presence of the Additional Buyer’s Stamp Duty (ABSD) of 60% as a deterrent for foreign buyers that could further suppress demand.
The other residential site, on De Souza Avenue off Jalan Jurong Kechil in the Upper Bukit Timah area, has a land size of 207,154 sq ft with a maximum GFA of 331,453 sq ft. It can be developed into a 335-unit residential project and has an expected quantum of $500 million, which is half as much as the Holland Drive site.
Huttons’ Lee states that this site is more likely to be triggered for sale due to its lower quantum price, but the lack of a nearby MRT station will have a negative effect on buyers. He predicts a top bid of $1,200 to $1,300 psf ppr, or a quantum price of between $397.74 million and $430.88 million.
The last GLS site awarded on De Souza Avenue was in Sept 2018. It was developed as the 258-unit Verdale, which sold out at an overall average price of $1,782 psf.
According to Eugene Lim, key executive officer of ERA Singapore, the demand in the District 21 neighbourhood is less affected by foreign buyers and was evidenced by the 71% sold of the 732-unit The Reserve Residences at an average price of $2,225 psf.
For the 2H2023 programme, just four sites on the Confirmed List and Reserve List are available, all located in the Rest of Central Region.
The property also provides excellent leisure and recreational facilities, such as an indoor swimming pool, a gym, a nursery, an outdoor garden and a tennis court. The location is ideal for those looking to stay in the Woodlands area, as it is strategically located near shopping malls, supermarkets, restaurants, schools and entertainment outlets. Furthermore, the Champions Way Condo Woodlands is well connected to major road networks and public transport, providing excellent access to the city centre of Singapore. All these features make Champions Way Condo Woodlands an ideal choice for those looking to purchase a property in the Woodlands area.
Given the current market climate, developers may need to consider forming a joint venture or other strategies to bid for the two residential sites.