For Sale - Apartment, Condominium, Residential
Holland Drive GLS: UOL and CapitaLand Lead with Top Bid
A prime, 99-year leasehold private housing site near Holland Village MRT station received three bids on May 14. The highest bid came from a consortium led by UOL Group and CapitaLand Development, totaling S$805.39 million. This equates to approximately S$1,285 per square foot per plot ratio (psf ppr).
Market Expectations
Holland Drive GLS site bids fell below market expectations. Analysts had predicted top bids between S$1,350 psf ppr and S$1,500 psf ppr. The site, expected to yield about 680 private homes, attracted three bids instead of the forecasted one to five.
Competitive Bidding
The second-highest bid was S$765.26 million, or S$1,221 psf ppr, from a partnership between Intrepid Investments and Hong Realty. The 5% difference between the top two bids suggests the market value developers place on this location. According to Huttons Asia project director Ngiam Juyong, this margin justifies considering the site award.
Lowest Bid for Holland Drive GLS
Japura Development, linked to CK Asset and Hong Kong tycoon Li Ka-shing, submitted the lowest bid at S$632 million, or S$1,008 psf ppr. The Urban Redevelopment Authority (URA) of Singapore conducted the tender for the Holland Drive GLS site.
Market Comparison and Trends
Holland Drive GLS S$1,285 psf ppr is 32% lower than the S$1,888 psf ppr fetched in 2018 for the adjacent commercial and residential site. That site is being developed into One Holland Village, comprising residential units, serviced apartments, retail, and office spaces by a consortium led by Far East Organization. This significant difference reflects developers’ cautious approach toward large, prime residential sites in current market conditions.
Conclusion
The Holland Drive GLS site saw competitive bidding despite falling below market expectations. The top bid by UOL and CapitaLand at S$1,285 psf ppr reflects current market sentiment and risk aversion among developers for large, prime sites. This cautious approach may influence future tenders and development plans in similar prime locations.
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