Tender launched for Holland Drive GLS site

By Nur Hikmah Md Ali

/ EdgeProp Singapore |

February 27, 2024 3:40 PM SGT

The Holland Drive GLS site is estimated to house 680 residential units (Photo: URA)

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SINGAPORE (EDGEPROP) - A site at Holland Drive has been released for sale under the 1H2024 Government Land Sales (GLS) programme, according to a Feb 27 press release by URA. The site is zoned for residential use and measures approximately 133,343 sq ft. The 99-year leasehold site can house an estimated 680 units.

This is the last plot of land for private residential development in the popular Holland Village enclave, says Lee Sze Teck, senior director of data analytics at Huttons Asia. The plot neighbours a parcel that will be launched as a Build-To-Order (BTO) project in June, Lee adds.

“The development may be developed into a project exceeding 30 storeys, thus offering residents unblocked views of the Good Class Bungalow (GCB) areas,” he adds. The site is close to a cluster of GCB areas, including Holland Rise, Oei Tiong Ham Park, Ford Avenue and Leedon Park.

Lee predicts that the top bid for the Holland Drive GLS site to be between $846 million and $909 million, translating to $1,350 to $1,450 psf per plot ratio (psf ppr). “The large site with more than 600,000 sq ft of gross floor area will translate to a large quantum and likely attract consortiums”.

Head of research and content at PropNex Realty Wong Siew Ying believes bidding for the site will be ”prudent and measured”, mirroring the cautious tone taken by developers for the GLS tenders of late.

“Apart from the tentative buying sentiment in the primary market, developers would also consider the potential impact of the hike in additional buyer’s stamp duty rates on investors and foreigners, which has weighed on home sales, particularly in the Core Central Region,” Wong notes.

Still, Wong says that the Holland Drive plot in prime District 10 remains attractive and the future residential development could be compelling to buyers due to its close proximity to various amenities. The plot is right next to the One Holland Village mixed-use development and a few minutes' walk to Holland Village MRT Station.

There are several schools nearby, including Henry Park Primary School, Anglo-Chinese School (International), Fairfield Methodist School (Primary and Secondary), and Anglo-Chinese Junior College. The area is also served by a wide range of F&B and retail offerings.

Wong projects that the Holland Drive GLS site may garner two to three bids, with the top bid price possibly ranging from around $909 million to $1 billion — equivalent to a land rate of $1,450 to $1,600 psf ppr. “Should the top bid come in at this level, it would be below that of the last GLS plot sold in Holland Road in 2018,” she adds.

The last GLS plot sold in Holland Road — where the One Holland Village mixed-development is presently located — drew a whopping 15 bids, observes Marcus Chu, CEO of ERA Singapore. “This affirms developers’ confidence in the Holland Village precinct.” The site was awarded in May 2018 to a consortium led by Far East Organization for $1.213 billion or $1,888 psf ppr.

However, Chu also expects more cautious responses from developers for the Holland Drive site. “Taking reference from the recent land sales prices, we estimate bids could come in around $1,450–$1,550 psf ppr which will work out to a land price of around $1 billion. Due to the price quantum, we are likely to see joint bids from consortiums for this site.”

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Tender launched for Holland Drive GLS site

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