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

Location plan for the GLS site at Champions Way (Picture: URA)

SINGAPORE (EDGEPROP) - The tenders for two government land sale (GLS) sites located at Lentor Central and Champions Way closed on Sept 12.

The Champions Way site, which can yield 350 units, drew six bids. City Developments Limited (CDL) submitted the top bid of $294.889 million, which reflects a land rate of $904 psf per plot ratio (psf ppr). CDL’s bid is 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) and developed into the 689-unit Parc Rosewood.

CDL says the site will replenish its landbank, ensuring a stable launch pipeline. “It has been over a decade since a private residential project was launched in Woodlands, so this is a rare opportunity to create a vibrant and sustainable icon alongside the government’s rejuvenation plans,” remarks Sherman Kwek, CDL group CEO.

The site garnered more interest from developers compared to the Lentor Central plot, which drew just two bids. Wong Siew Ying, head of research and content at PropNex Realty, observes that the Champions Way plot received the highest number of bids for a non-executive condominium (EC) site this year.

Nonetheless, she points out the large disparity between the top bid and the lowest bid received for Champions Way, with CDL's bid 45% higher than Innova Investments Limited's $203.33 million ($623 psf ppr). “In particular, we note that several of the bids are on the low side at below $750 psf ppr – which may indicate developers’ assessment of risks in the locale,” she observes.

Lam Chern Woon, head of research and consulting at Edmund Tie adds that the wide dispersion points to to "an inflection in the property market", with different expectations held by various market players.

Nonetheless, he notes the site will benefit from 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.

Leonard Tay, head of research at Knight Frank Singapore, believes 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, he adds. PropNex’s Wong shares a similar view, estimating the future average selling price at above $1,900 psf. “This project would set a new benchmark price for new launches in the Woodlands planning area,” she says.