The 99-year leasehold site (shown in blue) can yield about 280 residential units and commercial space spanning about 5,382 sq ft (Picture: EdgeProp LandLens)
SINGAPORE (EDGEPROP) - A site at Orchard Boulevard has been released for sale under the 2H2023 Government Land Sales (GLS) Programme, according to an Oct 17 press release by URA. The site is zoned “residential with commercial at first storey” and measures 75,686 sq ft. The 99-year leasehold site can yield about 280 residential units and commercial space spanning about 5,382 sq ft.
Map showing the location of the Orchard Boulevard site (Source: URA)
This is the first GLS site to be launched in the Orchard area since 2018, notes Eugene Lim, key executive officer at ERA Singapore. The last plot in the area that was sold is the site of the current 192-unit Cuscaden Reserve at Cuscaden Road. The site, awarded in May 2018, drew nine bidders with a top bid of $2,377 psf per plot ratio (psf ppf) by a joint venture between SC Global Developments, Far East Consortium and New World Development.
In the wider vicinity, at Irwell Bank Road, the current Irwell Hill Residences site was awarded in January 2020 to City Developments at the tender price of $583.888 million ($1,515 psf ppr).
Read also: Tenders launched for GLS sites at Canberra Crescent and De Souza Avenue
The Orchard Boulevard site is one of the most appealing plots under the 2H2023 GLS Confirmed List, says Wong Siew Ying, head of research and content at PropNex Realty. “It has the Orchard Boulevard MRT Station (Thomson-East Coast Line) virtually at its doorstep, is minutes’ away from the Orchard Road shopping belt, and is situated in an exclusive private residential enclave, with the Chatsworth Park Good Class Bungalow Area nearby,” she points out.
Justin Quek, deputy CEO of OrangeTee & Tie, notes that there are few GLS sites available in the Core Central Region (CCR). “The current launch may attract developers who wish to buy land in the prime location without going through an en bloc sale,” he adds. He also views the price quantum for the site will be “manageable” given the plot size.
The cooling measures imposed this year, including doubling of additional buyer’s stamp duty (ABSD) rate for foreigners to 60%, may prompt developers to be cautious, Quek says.
PropNex’s Wong concurs, noting that new non-landed private home sales in the CCR have slowed since the new ABSD rates took effect in April, while the proportion of new CCR non-landed homes sold to foreigners has also declined.
Wong predicts the lower demand, combined with an ample supply pipeline in the CCR, will result in measured bids from developers. She reckons the site could attract three to four bids with a top bid of around $1,800 to $2,000 psf.
OrangeTee & Tie’s Quek predicts two to five bidders for the site, with the highest bid price between $1,900 and $2,100 psf ppr.
Read also: GuocoLand-Hong Leong JV submit sole bid for Upper Thomson Road GLS site at $905 psf ppr
Meanwhile, ERA’s Lim anticipates around five bidders for the site, with a bid price of around $520 million to $550 million, which works out to $2,000 to $2,200 psf ppr.
List of condo developments within a 500m radius of the Orchard Boulevard site (Source: EdgeProp LandLens)
The tender for the Orchard Boulevard site will close on Feb 1, 2024, at noon. The tender closing for the site will be batched together with an executive condo site at Plantation Close, which will be launched in November.