Two bids were received for the government land sales (GLS) site at De Souza Avenue and the top bid of $278.9 million or $841 psf per plot ratio (psf ppr) was submitted by SL Capital (8) Pte Ltd, subsidiary of Sustained Land.
Situated off Jalan Jurong Kechil in District 21, the site spans 207,156 sq ft and has a maximum gross floor area (GFA) of 331,453 sq ft. It has the potential to accommodate approximately 355 residential units.
As part of the tender requirements, URA also mandates the construction of an early childhood development centre that must span at least 5,382 sq ft.
The highest bid of $841 psf ppr is significantly higher, 22.3% above the second highest bid of $687 psf ppr, which was submitted by Capital Development, a subsidiary of Eng Seng Lee Construction.
The location falls within the Beauty World neighbourhood and is poised to reap the rewards of URA’s revitalisation efforts outlined in the 2019 Master Plan. Exciting developments are on the horizon for the area, with plans for new amenities such as an integrated transport hub connecting Beauty World MRT Station and a bus interchange, as well as a three-storey retail mall.
According to Mark Yip, the CEO of Huttons Asia, the site is conveniently located near two beautiful nature reserves: Bukit Batok Nature Park and Bukit Timah Nature Reserve.
“There has been a significant rise in private resale transactions in the Bukit Timah area,” reports Mohan Sandrasegeran, head of research and data analytics at SRI.
The number of non-landed private resale transactions in the area increased to 145 units in 2Q2024, showing a growth of over 10% compared to the 131 units recorded in 1Q2024. According to his analysis, around 110 units were bought by individuals with a residential address. According to Sandrasegeran, the consistent demand indicates a possible group of individuals looking to upgrade their properties and showing interest in the area.
Located less than 200m from the De Souza Avenue GLS site, there is another GLS site along Jalan Jurong Kechil that is currently being developed into the 258-unit Verdale by COLI Singapore and CSC Land Group. This development was fully sold and completed last year. The site was successfully acquired by the joint venture partners for a total of $215 million, equivalent to $1,002 per square foot per plot ratio (psf ppr).
In November 2022, Bukit Sembawang Estates secured another GLS site 8@BT along Bukit Timah Link for $200 million ($1,343 psf ppr). Located within a 2 km radius of the De Souza Avenue GLS site, this 99-year leasehold site is set to be transformed into a 155-unit project featuring one-to four-bedroom flats.
According to Leonard Tay, the head of research at Knight Frank Singapore, and Wong Siew Ying, the head of research and content at PropNex Realty, the projected launch price for the site is approximately $2,000 per square foot. On the other hand, according to Sandrasegeran’s projections at SRI, it is estimated to be higher, ranging from $2,500 psf to $2,600 psf.
