[SINGAPORE] Sim Lian Land and Sim Lian Development teamed up to place what property consultants have described as the “bullish” top bid for the maiden government land sales (GLS) programme site in the new Holland Plain precinct.
The duo’s offer of nearly S$368.37 million for the 99-year leasehold private housing site works out to about S$1,432 per square foot per plot ratio (psf ppr). This was 22.2 per cent higher than the second-highest bid of S$1,171.70 psf ppr, from a fully owned subsidiary of Wee Hur.
In addition, the top bid was 55.7 per cent higher than the lowest, which was S$919.89 psf ppr from Sustained Land.
“The wide price gap between the highest and lowest bidders underscores the prevailing uncertainty among developers amid ongoing global volatility,” said ERA Singapore chief executive officer Marcus Chu. “This reflects a cautious approach to land acquisition, as market headwinds continue to weigh on sentiment.”
In all, the tender for the 183,729-square-foot (sq ft) plot in Holland Link, which closed on Tuesday (Jul 29), drew five bids.
Kingsford Group offered S$1,061 psf ppr. A consortium comprising ABR, Roxy-Pacific, Macly Capital and LWH bid nearly S$1,050 psf ppr.
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Both the number of bids and the top offer were higher than what property consultants polled by The Business Times earlier this week had forecast.
They had expected the site to draw zero to four bids, with the highest offer projected to be in the range of S$900 to S$1,300 psf ppr.
The Holland Link plot can be developed into a six-storey project with a maximum gross floor area (GFA) of 257,225 sq ft. The Urban Redevelopment Authority (URA) has set a cap of 233 housing units for this site, to manage traffic in the area.
Tricia Song, CBRE’s head of research for South-east Asia, said: “The top bid price of S$1,432 psf ppr is rather aggressive, as it is 1.6 per cent higher than what was fetched last month for the arguably better-located Dunearn Road site, which is closer to an MRT station.”
A consortium comprising CSC Land Group (Singapore), Frasers Property and Sekisui House outbid eight other contenders to clinch the Dunearn Road plot at S$1,410 psf ppr.
Analysts noted that the highest bid for the Holland Link plot is 11.4 per cent greater than the S$1,285 ppr paid last year by a partnership between UOL, CapitaLand Development, Singapore Land and Kheong Leong for a plum site in Holland Drive.
Moreover, the Holland Drive plot’s location is “far more attractive and accessible” than the latest site in Holland Link, said Mogul.sg chief research officer Nicholas Mak.
Similarly, CBRE’s Song noted that the Holland Drive plot is adjacent to shopping mall One Holland Village and close to surrounding amenities at Holland Village as well as Holland Village MRT station.
The Holland Link plot will be served by an upcoming MRT interchange station at King Albert Park, connecting the existing Downtown Line (DTL) and the Cross Island Line (CRL), which is still under development. A CRL station exit is planned for the north-west portion of the Holland Plain precinct.
Analysts estimate that the distance from the CRL station to the Holland Link plot is about 800 metres. The site is also near a columbarium.
Nevertheless, the plot has other attractive features. Wong Siew Ying, head of research and content at PropNex, said: “The key draws include the site’s proximity to many popular schools including Methodist Girls’ School (MGS) and Henry Park Primary School, and being located near Good Class Bungalow (GCB) Areas, which could lend a sense of exclusivity and prestige.”
Huttons Asia CEO Mark Yip also noted: “The precinct will feature generous green spaces and low-density living.”
CBRE’s Song and other property consultants also highlighted that the relatively strong participation for the Holland Link tender is underscored by the potential first-mover advantage it offers in the Holland Plain precinct.
It has several low-density residential plots planned near the CRL King Albert Park MRT station, which is slated to open in 2032.
The URA has envisaged the Holland Plain precinct – within the Bukit Timah Planning Area – as a leafy neighbourhood with a lush streetscape.
The precinct is bounded by MGS and the Brizay Park GCB Area in the north, the Holland Green Linear Park and Greenleaf landed housing estate in the south, the Rail Corridor in the west, as well as low-rise and landed housing on Garlick Avenue in the east.
The proposed project on the Holland Link site is required to include an early childhood development centre – for infant and childcare services – with a GFA of at least 5,382 sq ft; this figure is to be computed as part of the development’s maximum GFA.
The development “will enjoy convenient access to the city centre and Singapore Botanic Gardens along the DTL and, when the CRL is operational, it will be well-connected to Jurong Lake District and Clementi, as well as other parts of Singapore”, said URA.
The plot next to the Holland Link site is available for application on the reserve list of the GLS programme, and can be developed into a maximum of 282 private housing units.
