The Urban Redevelopment Authority has just closed the tender for a land parcel at Holland Drive. The tender was launched on 27 February 2024, and the parcel is zoned for Residential use. The plot may generate an estimated 680 units.
Demand at this site was relatively healthy and within our expectation with three bidders. The highest bid was from Holly Development Pte. Ltd, at S$ 805,390,000 or S$1,285 psf ppr. This was 5.2 per cent higher than the second bid from Intrepid Investments Pte. Ltd. and Hong Realty (Private) Limited, which was S$ 765,262,000 or approximately S$1,221 psf ppr.
This is the first GLS site to be launched in the Holland Village area since the neighbouring site, which is now the mixed development One Holland Village, was awarded around six years ago in May 2018. That land tender drew 15 bids, and was awarded at a land rate of S$1,888 psf ppr. New projects in the vicinity, such as the aforementioned One Holland Village and Van Holland, have both sold out completely. Hence, the lack of supply in the area may have boosted the attractiveness of this land parcel. Additionally, the land parcel is in close proximity to Holland Village MRT and the retail and dining amenities at the Holland Village enclave, making it a convenient location for future homeowners.
While there have been a lack of CCR land parcels awarded in the past 12 months, there have been some parcels recently launched for sale. Moreover, the 2H 2024 GLS programme will be announced in June 2024, which may also lead to an increase in CCR sites released for sale in the second half of the year. Developers would thus have more plots of land to choose from, and have been less aggressive with bid prices.