Singapore – Local developer City Developments Ltd has won two out of three land sites from the government land sales yesterday.
The sale of three residential sites located at Chong Kuo Road, Handy Road and West Coast Vale were closed yesterday on 30 January 2018, with CDL bringing home the latter two.
They had entered the winning bid of $212.2 million or $1722psf ppr for the plot at Handy Road, Dhoby Ghaut. Including a winning bid of $472.4 million or $800psf ppr for the land site at West Coast Vale. While the third land parcel on offer were in Chong Kuo Road along Sembawang Road (Mandai area), receiving a top bid of $43.95 million or $681psf ppr from a joint venture between OKP Land and Lian Soon Holdings.
The 51,626 square feet land parcel at Handy Road garnered the most interest, while the 210,883 square feet site of West Coast Vale drew the highest winning offer due to their excellent attributes and close-proximity to various amenties. Said Sherman Kwek, Chief Executive Officer of CDL Group.
With the local market beginning to recover from a slump, we’re selectively and continuing in seeking good sites to expand our land bank inventory, Mr Kwek said.
With the Handy Road site going to us, we are looking to explore 8 to 10 storeys high, while accommodating about 200 units with a basement carpark across three residential buildings. We will also be exploring the idea of converting the conserved building which is within the site into a clubhouse for the residents.
The attractive site is less than 100 meters away from Dhoby Ghaut MRT, and without a single GLS site made available in the area for the past few years. The winning bid put forth by CDL were quite bullish according to market watchers, as it was 48.9 percent higher than the land price of nearby Sophia Hills sold in 2013 at $1157psf ppr. They had also successfully snag a huge plot of land via collective sale at the former Amber Park recently with a record price tag of $906.7 million.
The estimated breakeven price for Handy Road land parcel will be approximately $2300 to $2400psf.
For the land parcel at West Coast Vale, CDL is planning to construct a 36-storey high building on 2 towers, housing not more than 730 units and with a basement car park.
Based on a market analyst, the high winning bid put forth by such a major player in the industry only reflects the confidence on the 2 sites and the local residential market sentiment going forward. Backed by strong financial muscles as they have already spent above $1.5 billion on this 2 sites and the one along amber road just a few months ago.