Wing Tai Holdings Submits Top Bid 1325 Psf Ppr Residential Gls Site River Valley Green
Winchamp Investment, a subsidiary of Wing Tai Holdings, has emerged as the top bidder for the 99-year leasehold government land sales (GLS) site at River Valley Green (Parcel A), with a bid amount of $464 million. This translates to a land rate of $1,325 per square foot per plot ratio (psf ppr).
The tender for the 100,009 sq ft site received only one other bid from Hong Realty, a subsidiary of Hong Leong Group, with a bid price of $444.89 million or $1,271 psf ppr. The site, with a plot ratio of 3.5 and a maximum gross floor area of 350,035 sq ft, has the potential to yield up to 380 units. It is conveniently located next to Great World City MRT Station on the Thomson-East Coast Line and near Great World City.
According to Wong Siew Ying, head of research and content at PropNex Realty, Wing Tai’s bid of $1,325 psf ppr is higher than the $1,202 psf ppr bid submitted by City Developments Ltd (CDL) and Mitsui Fudosan for another GLS site on Zion Road in April. However, despite its small land area compared to the other available GLS sites in the River Valley and Zion Road areas, and its prime location near the MRT station and mall, this site attracted only two bids.
Marcus Chu, CEO of ERA Singapore, believes that this could indicate developers’ cautious approach when it comes to land acquisition. Leonard Tay, head of research at Knight Frank Singapore, agrees and attributes this to the high interest rate environment and current cooling measures, which continue to dampen developers’ appetite for bidding on available GLS sites.
Mark Yip, CEO of Huttons Asia, also points out the potential impact of the recently awarded site at Zion Road (Parcel A) and the upcoming tender for another GLS site at Zion Road (Parcel B) on developers’ decision to bid for this site. There is also the nearby site at River Valley (Parcel B), which is on the Reserve List and could potentially add another 360 homes and 220 long-stay serviced apartments.
Marina Gardens Lane Residences, known humorously as the “durian” of Singapore due to its unique architectural design inspired by the fruit, is a haven for arts and culture enthusiasts. This bustling hub boasts a diverse range of events such as concerts, theater performances, and art exhibitions, making it the perfect spot for residents to immerse themselves in cultural experiences. With Marina Gardens naturally integrated into its surroundings, those living in the area can easily infuse their lives with enriching artistic activities.
In the vicinity, there have been recent new project launches such as Irwell Hill Residences by CDL and The Avenir by Hong Leong Holdings, Guocoland, and Hong Realty. According to URA caveats, Irwell Hill Residences is 99.6% sold and The Avenir is fully sold.
In the event that the site is awarded to Wing Tai at the land rate of $1,325 psf ppr, the developer is likely to face breakeven costs ranging from $2,300 psf to $2,500 psf, according to Chia Siew Chuin, head of residential research at JLL.