URA puts up Holland Drive Government Land (GLS) for tender
URA’s press release dated February 27 stated that the site on Holland Drive had been made available to be sold under 1H2024 Government Land Sales. The site has a residential zone and measures around 133.343 sq ft. The 99-year land lease can house approximately 680 housing units.
This is a last-chance plot for private development of residential property in Holland Village. Lee added that parcel A is next to the plot and will be launched by Edgeprop as a Build To Order BTO project in June.
The development could be extended to 30 floors, allowing residents a clear view of the Good Class Bungalow areas. The site has a cluster GCB area, such as Holland Rise Oei Tiong Ham Park Ford Avenue & Leedon Park.
The expected top bid at the Holland Drive GLS Site will range between $846 Million and $909 Million, which is $1,350 to 1,450 psf (per plot ratio) per square foot. The large plot with over 600,000 sq. ft. of gross floor space will translate to an impressive quantum that is likely to attract consortiums.
In recent times, developers have shown caution in bidding for GLS sites.
Aside from the cautious buying sentiment, developers should also take into account the impact the increased additional buyer’s stamp duty on foreigners and international investors could have on home sales. This is particularly true in the Core Central Region.
Still, Holland Drive in prime district 10 remains attractive. A future residential development near various amenities may also be a compelling option for buyers. The One Holland Village mixed use development is adjacent to the plot, and it’s only a couple of minutes away by foot from Holland Village MRT Station.
In the vicinity, there are several schools including Henry Park School, Anglo-Chinese School international, Fairfield Methodist School primary and secondary, and Anglo-Chinese Junior College. The area has many F&B and Retail offerings.
Holland Drive GLS may receive up to three bids. A top bid of around $909 million or $1 billion is possible. This equates to a land price between $1,450 and $1,600 per square feet. If the top offer is this high, it would still be below the GLS lot sold in Holland Road last year.
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The last GLS land sold in Holland Road (where the One Holland Village development is currently located) attracted a record 15 bids.
This confirms the developers’ confidence. The site had been awarded in May 2018 by a consortium headed by Far East Organization, for $1.213B or $1.888 psf.
Many are expecting more cautious responses by developers on the Holland Drive location. Based on recent land sales prices it is estimated bids could be in the region of $1.450-$1,550 per square foot, per parcel, which will translate into an approximate land price of $1 billion. Because of the price, it is expected that consortium will submit their interest in this site.
