CapitaLand-led consortium tops bid to S$805m for Holland Dr

The top bid came in at S$1,285psfppr. This was below expectations on the market, reflecting the developers’ continued aversion to taking risks for large, prime residence sites.

On Tuesday, 14 May, three bids came in for a 99 year leasehold private property near Holland Village Metro station. They were still below market expectations since developers remain cautious when it comes to prime, large sites.

The top bid, by a consortium headed by UOL Group & CapitaLand Development amounted to S$805.39 millions, or S$1,285 each per square foot (psf) per plot ratio.

The Business Times had polled the analysts to predict that the highest bid for this site would range between S$1,350 and S$1,500. The site could yield up to 680 private homes. They predicted between 1 and 5 bids.

Hong Realty and Intrepid Holdings made a partnership to bid S$765.26m, or S$1,221psfppr. The second-highest amount was S$765.26m, which is S$1,221psfppr. The difference between the two highest bids is 5%, which means that these are the values developers place on this location. It might be a very good reason for awarding the location.

Japura Development from Hong Kong, affiliated with CK Asset and founded by Hong Kong tycoon Li Kashing, made the lowest tender of S$632,000,000 (or about S$1,008 psf ppr). Singapore’s Urban Redevelopment Authority was responsible for the tender.

Market watchers pointed out that the S$1,285 PSF PPr top offer is around 32 per cent lower than the S$1,888 PSF PPR for the adjacent commercial-residential site in 2018. Far East Organization and a consortium are developing the One Holland Village project, which includes residential, office, retail, serviced apartment space, and retail.

While the pure residential Holland Drive property is not comparable with the mixed use One Holland Village parcel of land, developers have submitted bids that are more conservative compared to six years back.

Additionally, it is possible that the large number housing units which can be produced on the Holland Drive location may have affected bids.

One Holland Village Residences – a development with just 296 homes, far fewer in number than the estimated 600 units on the Holland Drive lot – has taken four years to complete. As a result, developers may be hesitant about developing the site located at Holland Drive.

Although developers can benefit from the 680 housing unit site on Holland Drive by leveraging its size to create economies of scale, it also comes with greater development risks.

If the new cooling measures in April 2023 had not raised the Additional Buyer Stamp Duty rates for certain buyer profiles to reflect the increase, the site would have appealed to more foreign buyers.

The consortium with the highest bidder at the recent tender is made up of CapitaLand Development & UOL, each 35 percent, Singapore Land 20 percent, and Kheng Leong 10 percent.

The Tampines Avenue 11 mixed land-use site, which the two clinched together last year, is now the second joint project between CapitaLand & UOL.

The consortium has stated that, if it is awarded the tender for the development of two 40 story condominium towers containing 680 units, then they will develop the site. They are confident the site will appeal to discerning buyers, due to its great location adjacent the iconic Holland Village. Holland Village is a popular lifestyle option with locals as well as expatriates.

The developer was able to sell all 296 One Holland Village Residences units launched in November 2019. At an average price per square foot of S$2,804, the project was sold out by August 2023. The developer sold all 63 units by 2023 for an average price S$2,943/sqft.

The Holland Drive project could have an average selling cost starting at $2.800 per sq. ft.

The estimated breakeven cost ranges between S$2,500psf to S$2,700psf. This depends on material, design and technical factors. Launch prices could start as low as S$2,800 psf. The average price is likely to be around S$2,900.

The Holland Drive site will be the last plot available for private residential developments in Holland Village. The neighbouring parcel, which is a Build To Order HDB project, will launch in June 2024. It is situated next to One Holland Village and a very short walk away from Holland Village MRT Station.

The Holland Drive location, which measures 133.343 square feet and has frontages onto Holland Drive North Buonavista Road and Holland Road can be constructed to a gross floor area maximum of 626.717 sq.ft.

There are also existing public housing estates near Holland Drive and nearby Good Class Bungalows in North Buona Vista Road, Holland Road and North Buona Vista Road. The site is located near existing schools, including Nanyang Primary Primary Henry Park Primary Fairfield Methodist Primary.

Holland Village has a number of retail outlets, as well as food and beverages that can be enjoyed by the future site project.

Even though the location was attractive, the developers bid on the Holland Drive property in a very conservative manner.




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