The Urban Redevelopment Authority (URA) has recently released two residential sites, located at Holland Link and Chuan Grove, for tender on December 3rd. These sites, which are both 99-year leasehold and part of the Confirmed List in the 2H2024 Government Land Sale (GLS) Programme, are expected to yield a total of 785 new housing units.
The first site, located along Holland Link in District 10, spans 185,141 square feet and has an estimated maximum gross floor area (GFA) of 257,225 square feet. It is predicted to have the potential for about 230 residential units based on URA estimates. The site is situated in the upcoming Holland Plan precinct, one of URA’s three upcoming areas alongside Bayshore and Kampong Bugis. Marcus Chu, CEO of ERA Singapore, notes that this precinct is estimated to house about 2,500 new homes.
Chu anticipates developers to eagerly bid on the Holland Link site in order to gain a first-mover advantage by being the first to introduce 230 units into the pipeline. The site’s location within a 2-kilometre radius of several reputable schools, including Methodist Girls’ School (Primary and Secondary), Henry Park Primary School, Pei Hwa Presbyterian Primary School, and National Junior College, is also seen as a plus factor for families with young children looking for priority admission into these schools.
The Holland Link site is also in close proximity to the Brizay Park Good Class Bungalow area, leading to the prediction that its future development will focus on low-density private residences. Mark Yip, CEO of Huttons Asia, believes that the site will receive between one and two bids, with a top bid ranging from $1,200 to $1,300 per square foot per plot ratio (psf ppr). Similarly, Chu predicts a muted response to the site, with a possible maximum of three bids, as there are currently seven residential sites open for tender, potentially leading to saturation in the tender process.
The second site, located along Chuan Grove in District 19, spans 170,409 square feet and has an estimated maximum GFA of 511,232 square feet. It is expected to yield about 555 new housing units. The site is located within 400 metres of Lorong Chuan MRT Station on the Circle Line, which is one stop away from the Bishan MRT Station (interchange with the North-South Line) and the Serangoon MRT Station (interchange with the North-East Line).
Chu predicts that the future development on this site will attract HDB upgraders living in the vicinity. In the next four years, an estimated 3,815 four-room and larger Build-to-Order (BTO) units will fulfill their Mandatory Occupation Period (MOP) in Toa Payoh. Chu adds that residents in older HDB estates may seek to upgrade their homes due to the increasing number of million-dollar flats in neighbouring Serangoon, Bishan, and Toa Payoh. The median transaction prices for five-room flats in these areas over the last 10 months were $792,000 and $828,000, respectively.
When contemplating an investment in a Singapore condo, it is crucial to also evaluate its potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, rental yields for condos can vary significantly depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to offer more favorable rental yields. Conducting thorough market research and seeking advice from real estate agents can provide valuable insights into the rental potential of a specific condo.
Chu also notes that the better-than-expected sales performance at Chuan Park, with 76% of its 916 units sold at an average price of $2,579 psf during its launch weekend, could also encourage developers to bid for the Chuan Grove site. He predicts that the bids for this site could range from $571 million to $600 million, which translates to a land rate upwards of $1,200 psf ppr. Yip, on the other hand, predicts a total of three to five bids for this site, with a top bid between $1,150 and $1,250 psf ppr.
Interested parties may submit their tenders for the Chuan Grove site until noon on July 8, 2025, and for the Holland Link site until noon on July 29, 2025.