2 sites at Holland Drive & Upper Bukit Timah are released

There is a high probability that four of the sites will be put up for tender over the next six month, given the ample supply of sites confirmed on the list as well as the lack attractive suburban sites on reserve list.

GLS’s recent tenders reveal that developers are still eager to buy land, as indicated by the high level of bids.

Under the GLS reserve list, two sites on Holland Drive and De Souza Avenue Upper Bukit Timah were released for the second halves of 2023.

Holland Drive’s attractive location, close proximity to Holland Village Station MRT, and the commercial amenities available in Holland Village are likely to drive up land prices, potentially exceeding $1 Billion.

This means that it won’t be put on the market yet. Experts say that a potential bid for $1 billion or more on the Holland Drive site with over 600,000 sq. ft. of gross area may deter bidders other than consortiums.

Due to cooling measures, it is important to focus on the local market when deciding the size, quantity, and unit mix.

However, many analysts do not expect developers to take action anytime soon.

Newport Residences

A developer must indicate a minimum price which is acceptable to the Government before a site can be placed on the reserve-list.

It is possible that De Souza could be put on the market due to limited new supplies in the region and the potential price of less than $500 million.

If triggered the site could receive a top offer of between $1200 to $1300 per square foot ppr. This equates to between $397.74million and $430.88million.

In addition to the Holland Drive site and De Souza Avenue, there are two other sites that will be added to the reserve list for 2023. These include an executive condo in Tampines Street 95 (for 560 homes) and Zion Road parcel B (for 605 units), which is a 0.92-hectare plot.

Most analysts think that these two sites, which are part of the four sites on reserve for the second-half of 2023 and can potentially yield 1,035 private houses, won’t be released for sale any time soon.

De Souza Avenue, which has the potential to offer 355 homes, is also not expected to be triggered anytime soon by some analysts because it does not have an MRT nearby.

Analysts point out that other new launch projects are more conveniently located nearby. These include the Bukittimah GLS near Beauty World Station MRT, or Hillhaven near Hillview Rise MRT.

The Jalan Jurong Kichil site, which is now home to the 258-unit Verdale, is the last GLS plot awarded in the immediate vicinity. This plot of land was awarded to the developer in September 2018 at a price of $215 million. The land rate is $1,002 PSF ppr.

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