The highest bidder for the Jalan Tembusu site, situated at Jalan Tembusu, off Tanjong Katong Road in Singapore District 15, was Singapore-listed property giant City Developments Ltd (CDL). CDL offered $768 million, or $1,302 per square foot per plot ratio (ppr). (For the most up-to-date information on Singapore housing market trends, go here.)
The purchase, according to CDL CEO Sherman Kwek, would increase CDL’s development inventory by approximately 600 units. “After launching and developing other projects in the area, including Amber Park, which is about 90% sold,” he adds, “this is a wonderful chance to grow our footprint in this locality and build yet another lasting landmark.” The Tembusu location has the ability to produce 640 units.
Hong Leong Holdings, CDL’s parent firm, together with Hong Realty and TID, filed the second highest proposal for the property, at $712.6 million ($1,208 psf ppr).
“Jalan Tembusu in District 15 attracted a greater response since it was the more appealing location,” says Ong Teck Hui, at JLL. “Taking into consideration the recent cooling measures, the number of bidders and the maximum offer were above expectations for both sites.” The property is close to facilities including the forthcoming Tanjong Katong MRT station, prominent institutions like Tanjong Katong Primary School and Canadian International School (Tanjong Katong Campus), Katong area restaurants, and East Coast Park. “Many house purchasers will be attracted to the location because of its great characteristics,” he says.
According to Lee Sze Teck of Huttons, “developers are likely to have taken into account the possible supply in the region.” The land at Thiam Siew Avenue, which was sold en bloc to a joint venture between Hoi Hup Realty and Sunway Developments for $815 million last November, is only a short walk away. The two plots on each side of Thiam Siew Avenue might be redeveloped into two 800-unit freehold private condos. After deducting the construction fee and the 7% additional balcony space, the pricing works out at $1,440 psf ppr.
Meanwhile, according to Huttons’ Lee, another GLS property along Dunman Road will be put up to tender in March.
The selling price for the new project in Jalan Tembusu, according to Nicholas Mak, head of research and consultancy at ERA Realty Network, might be in the $2,300 to $2,400 psf range.