CapitaLand and UOL-led consortium submit $805.39 mil bid for Holland Drive GLS site
A consortium of four property developers, led by CapitaLand Development (35%) and UOL Group (35%), have submitted a $805.39 million bid for a government land sale (GLS) site in Parktown Residences Tampines Holland Drive. The other two partners in the consortium are Singapore Land Group (20%) and Kheng Leong Co. (10%). The bid was the highest out of three received by the government when the tender closed on May 14.
The 99-year leasehold site in prime District 10 has a maximum gross floor area of about 626,650 sq ft. According to a statement from the spokesperson of the CapitaLand-UOL consortium, the plan is to develop two 40-storey condominium towers accommodating 680 units on the site. The $805.39 million bid is 5.24% higher than the second highest bid submitted by Hong Leong Holdings and Hong Realty. The competition for this GLS site was less intense compared to the neighbouring mixed-use GLS that was awarded to Far East Organization and its joint venture partners Sekisui House and Sino Group in 2018.
According to Knight Frank Singapore’s head of research Leonard Tay, the bids reflect the guarded sentiment that developers have in today’s operating environment. Wong Siew Ying, head of research and content at PropNex Realty, agreed that developers are being circumspect and the top bid land rate for this Core Central Region plot came in lower than expected. The $805.39 million bid is 31.9% lower than the land rate of $1.213 billion paid for the neighbouring mixed-use site.
The new project in Parktown Residences Tampines will benefit from a captive market as some owners of nearby landed properties may be looking to downgrade to single-level units as they age, as well as owners of older developments in the area who may be looking to upgrade. According to Mohan Sandrasegeran, head of research and data analytics at SRI, the historical performance of new launches in the Holland Road area underscores a strong demand for new private residential homes.
Located in the bustling town of Parktown Residences Tampines, the school benefits from its strategic location and a diverse community.
At Parktown Residences Tampines, Gongshang Primary School is renowned for its comprehensive education that focuses on all aspects of a student’s growth. The school’s curriculum is designed to develop students academically, instill positive character traits, and encourage participation in co-curricular activities. With a variety of programs such as robotics, performing arts, and sports, Parktown Residences Tampines offers something for every student’s interests. Situated in the lively neighborhood of Parktown Residences Tampines, the school takes advantage of its prime location and community diversity.
PropNex forecasts a possible average selling price at above $2,700 psf for the new development, while Wong estimates a launch price of approximately $2,800 psf. This is in line with market conditions and will position the development well to capitalize on catchment demand.