CDL top bidder for Jalan Tembusu GLS site at $1,302 psf ppr

SINGAPORE (EDGEPROP) - The tender for two government land sale (GLS) sites at Jalan Tembusu and Lentor Hills Road (Parcel A) closed this evening.

Singapore-listed property group City Developments Ltd (CDL) emerged the top of eight bids for the Jalan Tembusu site, located off Tanjong Katong Road in prime District 15. CDL submitted a bid of $768 million or $1,302 psf per plot ratio (ppr). (Check all latest Singapore property Market Trends)

CDL group CEO Sherman Kwek says the acquisition will bolster CDL’s development inventory by over 600 units. “Having launched and developed various projects in the vicinity including Amber Park, which is close to 90% sold, this is an excellent opportunity to expand our presence in this locale and create yet another enduring icon,” he says. The site at Tembusu has the potential to yield 640 units.

CDL’s parent company, Hong Leong Holdings, along with Hong Realty and TID, submitted the second highest bid of $712.6 million ($1,208 psf ppr) for the site.

“Being the more attractive site, Jalan Tembusu in District 15, drew a stronger response,” comments Ong Teck Hui, JLL senior director of research & consultancy. “Both the number of bidders and top bid were at the upper end of expectations, taking into account the latest cooling measures.” The site is located near amenities such as the upcoming Tanjong Katong MRT station; popular schools such as Tanjong Katong Primary School and Canadian International School (Tanjong Katong Campus); eateries in the Katong area and East Coast Park. “The site’s strong attributes will attract many home buyers,” he adds.

Developers are likely to have taken into consideration the potential supply in the area, notes Lee Sze Teck, head of research at Huttons Asia. Just a short walk away is the site at Thiam Siew Avenue, which was sold en bloc to a joint venture between Hoi Hup Realty and Sunway Developments last November for $815 million. The two sites on either side of Thiam Siew Avenue could be redevelopment into two freehold private condominiums with a combined totall of 800 units. The price works out to $1,440 psf ppr after taking into consideration development charge and the 7% bonus balcony area. (See potential condos with en bloc calculator)

Meanwhile, another GLS site along Dunman Road will be launched for tender in March, adds Huttons’ Lee.

Nicholas Mak, head of research and consultancy at ERA Realty Network, estimates that the selling price for the new project at Jalan Tembusu could be in the $2,300 to $2,400 psf range.