Wing Tai Holdings Submits Top Bid 1325 Psf Ppr Residential Gls Site River Valley Green
Wing Tai Holdings, through its subsidiary Winchamp Investment, has emerged as the top bidder for the 99-year leasehold government land sales (GLS) site at River Valley Green (Parcel A), submitting a bid of $464 million. This translates to a land rate of $1,325 per square foot per plot ratio (psf ppr).
The tender saw competition from only one other bidder, Hong Realty, a subsidiary of Hong Leong Group, which placed a bid of $444.89 million or $1,271 psf ppr.
Spanning across 100,009 square feet, the River Valley Green (Parcel A) site has a plot ratio of 3.5 and a maximum gross floor area of 350,035 square feet, which could potentially yield up to 380 units. Its location adjacent to the Great World City MRT Station on the Thomson-East Coast Line and its proximity to Great World City make it a highly desirable site.
According to Wong Siew Ying, head of research and content at PropNex Realty, Wing Tai’s winning bid of $1,325 psf ppr is higher than the $1,202 psf ppr bid that City Developments Ltd (CDL) and Mitsui Fudosan submitted for another GLS site on Zion Road in April.
CEO of ERA Singapore, Marcus Chu, comments that despite being the smallest among the four GLS sites in the River Valley and Zion Road areas and its strategic location, the site only attracted two bids, indicating cautiousness among developers in acquiring land.
Knight Frank Singapore’s head of research, Leonard Tay, agrees and attributes the “continued lack of appetite” from developers for some available GLS sites to the high interest rate environment and existing cooling measures.
Mark Yip, CEO of Huttons Asia, notes that developers would have to take into consideration the potential impact of the 1,300 homes from the recently awarded GLS site at Zion Road (Parcel A) and another site at Zion Road (Parcel B), which has its tender closing next month, before deciding to bid for the River Valley Green (Parcel A) site.
Another nearby site at River Valley (Parcel B) is on the Reserve List – if triggered and awarded, it could potentially add 360 residential units and 220 long-stay serviced apartments.
Recent projects in the area include CDL’s 540-unit Irwell Hill Residences, which is 99.6% sold, and The Avenir, a 376-unit freehold development by Hong Leong Holdings, Guocoland, and Hong Realty, which is fully sold according to URA caveats.
Siew Chuin, head of residential research at JLL, estimates that if the River Valley Green (Parcel A) site is awarded to Wing Tai based on the land rate of $1,325 psf ppr, the breakeven cost for the developer could range from $2,300 psf to $2,500 psf.
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