URA had Holland Drive GLS tender launched for sale.
URA released a press statement on Feb. 27 stating that a site at Holland Drive was made available for purchase under the 1H2024 Government Land Sales Programme (GLS). Site is zoned as residential and measures 133,343 square feet. The 99-year site lease can accommodate 680 apartments.
This is the final plot of land in the Holland Village area for private residential developments. Lee says the plot adjoins parcel A which will be developed as a Build To Order project (BTO) in June.
The project may reach a height of 30 stories, allowing residents to enjoy unobstructed views of Good Class Bungalows (GCB). The site is near a cluster GCB areas including Holland Rise Oei Tiong-Ham Park Ford Avenue, and Leedon Park.
It is estimated that the highest bidder for the Holland Drive GLS site will be between $846,000,000 and $909,000,000, or $1,350-$1,450 psf/plot ratio (psf/ppr). The large site of more than 600,000.00 sq ft will translate to large quantities and attracts consortium.
Developers are expected to be cautious and measured in their bids, as they have recently been for GLS tenders.
In addition to the uncertain buying sentiment on the primary markets, developers will also take into consideration the impact that the additional buyer’s Stamp Duty rates have had on foreigners and investors. This has affected home sales, especially in the Core Central Region.
The Holland Drive site in District 10 is attractive, and its future residential development may be appealing to buyers because of the close proximity to many amenities. The plot is next to One Holland Village and just a few minutes walk away from Holland Village MRT Station.
There are a number of schools in the area, including Henry Park primary school, Anglo-Chinese School(International), Fairfield Methodist SchoolPrimary and secondary) and Anglo-Chinese Junior College. A wide variety of F&B options and retail stores are available in the vicinity.
According to projections, the Holland Drive GLS could receive between two and three bids. This would translate to a top price of $909 to $1 billion. That is equivalent to a rate for land of 1,450 to 1,600 psf per ppr. If the highest bid is at this level, the land rate would be lower than the last GLS plot in Holland Road sold in 2018.
The final GLS plot in Holland Road, which is where One Holland Village’s mixed-use development is located today, attracted a total of 15 bids.
This shows developers’ confidence in Holland Village. The site was awarded to a Far East Organization-led consortium in May 2018 for $1.213billion or $1888 psf.
There are also many who expect more conservative responses from the developers of the Holland Drive site. In light of recent land sale prices, it’s estimated that bids will be in the range of $1,450-1550 psf per parcel per year, which would work out to around $1 billion for land. The price will probably lead to joint bids with several consortium.
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