The Holland Drive GLS residential site was awarded to CapitaLand and UOL for S$805.39 million.
URA has awarded the tender for the Holland Drive government land sales (GLS) site to the consortium, Holly Development, that comprises CapitaLand Development (35 per cent), UOL (35 per cent), Singapore Land (20 per cent) and Kheng Leong (10 per cent).
The consortium’s bid of $805.39 million was the highest of three bids received when the tender for the site closed on May 14. Its bid works out to a land rate of $1,285 per sq ft per plot ratio (psf ppr).
The second highest bid of $765.26 million was jointly submitted by Hong Leong Holdings and Hong Realty. It was 5.24% lower than the winning bid.
The consortium plans to develop two 40-storey condominium towers on the District 10 site, which can yield 680 units and is next to the One Holland Village mixed-use development.
The Holland Drive site has a maximum gross floor area of more than 626,000 sq ft with strong selling points such as its attractive location and proximity to Holland Village MRT station and commercial amenities in Holland Village.
The $805.4 million top bid is 31.9 per cent below the winning bid at the last state land tender for a neighbouring Holland Road site, which was $1.21 billion, translating to a land rate of $1,888 psf ppr, back in May 2018.
One Holland Village Residences was built on that site, and launched in November 2019. Its 296 units were sold by August 2023 at an average price of $2,807 psf.
Given that One Holland Village Residences took about four years to sell out, developers are likely cautious about the 680-unit site in Holland Drive, said PropNex head of research and content Wong Siew Ying.
Potential risks include the larger development size and price quantum, coupled with the muted market sentiment and property curbs such as the 60 per cent additional buyer’s stamp duty on foreign buyers, she said.
She added that if the Holland Drive site is awarded at $1,285 psf ppr, this land rate would be the lowest for a prime-district Government Land Sales (GLS) residential plot since the Kampong Java Road site (now Kopar at Newton) was awarded at $1,192 psf ppr in January 2019.
According to estimates by Knight Frank Singapore and Singapore Realtors’ Inc, the launch price of future residential units built on the site could start at $2,800 psf. However, PropNex forecasts a lower possible average selling price starting from $2,700 psf.
(Source: The Business Times, EdgeProp)
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