Residential sites at Holland Drive and De Souza Avenue for sale on Reserve List

By Nur Hikmah Md Ali

/ EdgeProp Singapore |

November 16, 2023 5:20 PM SGT

A map of the surrounding properties in the vicinity of Holland Drive site (Source: EdgeProp's LandLens).

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SINGAPORE (EDGEPROP) - URA has released two residential sites at Holland Drive and De Souza Avenue for sale on Nov 16 under the 2H2023 Government Land Sales (GLS) programme. The two 99-year leasehold sites are available for sale on the Reserve List and yield 1,035 residential units.

The Holland Drive parcel is deemed the more attractive of the two sites, says Wong Siew Ying, PropNex head of research and content. The site is in prime District 10 and located next to various amenities at the One Holland Village mixed-use development and within walking distance of the Holland Village MRT station, she adds.

With a land area of 133,330 sq ft and a maximum gross floor area (GFA) of 626,665 sq ft, it can be developed into a 680-unit residential project.

PropNex's Wong does not expect the site to be triggered for sale as the plot is likely to command a quantum price exceeding $1 billion.

While the bid price above $1 billion may put off local bidders, developers could join forces to form a consortium to bid together, which is what they are increasingly doing, says Lee Sze Teck, senior director of Huttons Data Analytics.

The other concern is the existing cooling measures, with the additional buyer's stamp duty (ABSD) of 60% a deterrent for foreign buyers, thereby further suppressing demand, adds Lee.

Meanwhile, the De Souza Avenue site, located just off Jalan Jurong Kechil in the Upper Bukit Timah area, sits on a land site of 207,154 sq ft with a maximum GFA of 331,453 sq ft. It could be developed into a 335-unit new residential project.

Huttons' Lee anticipates that the site is slightly more likely to be triggered for sale as the expected quantum of $500 million is half that of the Holland Drive site. There is also limited new supply of residential development land in the vicinity, he points out.

The last GLS residential site awarded on De Souza Avenue was in Sept 2018. The plot drew three bids, with a joint venture between Chinese developers CSC Land and COLI Singapore winning the site with a bid of $215 million or $1,002 psf per plot ratio (ppr). The site was developed as the 258-unit Verdale. Launched in September 2020, the project was entirely sold in May last year at an overall average price of $1,782 psf, notes PropNex's Wong.

Screenshot of the De Souza Avenue site and its surrounding amenities (Source: EdgeProp LandLens).

However, the De Souza Avenue site is not near any MRT station, "which is an important factor for buyers today," Wong adds. The nearest MRT station is Beauty World MRT, about 1km away.

If triggered for sale, the De Souza Avenue site may attract between one to three bidders, reckons Huttons' Lee. He expects a top bid between $1,200 and $1,300 psf ppr, or a quantum price of $397.74 million and $430.88 million.

According to Eugene Lim, key executive officer of ERA Singapore, the latest new project launch in the District 21 neighbourhood was the 732-unit The Reserve Residences, which is part of an integrated development that includes a direct connection to the Beauty World MRT station, bus interchange and a mall. The project sold 71% of its units at launch at an average price of $2,225 psf. The Reserve Residences is 91% sold to date.

"The De Souza site is a popular neighbourhood among local homebuyers," says ERA's Lim. "Demand in this area is less affected by foreign buyers."

In the 2H2023 programme, only three sites on the Confirmed List and one more on the Reserve List are still available for sale, notes Lim. All four sites are in the Rest of Central Region.

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