CDL 'confident' about attaining master-developer status
The property group is also due to debut Irwell Hill Residences, its first launch this year, on April 10
Singapore
CITY Developments Limited (CDL) has set its sights on becoming a master developer in Singapore, even as it focuses on replenishing its land bank to ensure a stable launch pipeline.
The property group, which builds up its land bank by taking part in collective-sale tenders and the government land sales programme, aims to be the one developer picked to plan and build an entire precinct or district instead of individual, smaller parcels.
And the one opportunity that it hopes would earn it "master developer" status is Kampong Bugis, next to Kallang Basin, said the group's general manager Chia Ngiang Hong, who is also president of the Real Estate Developers' Association of Singapore (Redas).
Wearing his Redas hat, he called at a media briefing on Thursday for the additional buyer's stamp duty (ABSD) rules to be updated, and for more flexible housing models to be allowed. This would encourage prudent land bids and ease some pressure off developers, he said.
On CDL, he expressed confidence in the group's chances of clinching master-development projects once they are available for tender, given the company's solid track record of winning tenders under the two-envelope system.
The 8.3-hectare Kampong Bugis site was released under the reserve list of the government land sales programme in December 2019.
The area has been earmarked for future private residential use, and can potentially yield up to 4,000 new homes. This would provide CDL with "a good land bank over the longer term" if the company is picked as the waterfront precinct's master developer, Mr Chia said.
Separately, he reiterated Redas' call for a review of the ABSD policy for developers, in part to prevent land prices from surging and to relieve the pressure of time on the industry.
Developers have to complete and sell all units of a project within five years to qualify for upfront remission of the 25 per cent ABSD on residential site purchases. This five-year deadline has "created a very tight cycle" of developers bidding for land, rushing to develop and sell, and then running out of inventory at around the same time as their peers, so they have to quickly replenish their land bank, Mr Chia said.
This also makes it challenging for developers to schedule their projects, "especially now that we try to improve our projects ... incorporate green (elements) and nice architecture, which need a bit more time".
"We certainly hope" there will be tweaks to ABSD rules, he said.
On previous occasions, he had recommended that some flexibility be given to developers in the time frame for them to sell projects.
There have also been suggestions for the government to allow alternative housing models such as build-to-rent, instead of the standard build-to-sell approach.
Build-to-rent entails the developer retaining long-term ownership of the entire development and renting out the units for income.
Turning his attention to the current en-bloc market, he said smaller plots will likely be more palatable; sites with price tags of around S$100 million should attract more interest.
CDL's residential launch pipeline this year totals more than 1,200 units, including the former Liang Court site, a joint-venture project with CapitaLand. CanningHill Piers, the 696-unit residential component within the Liang Court redevelopment, will be launched in the second half of 2021.
Before that, Irwell Hill Residences in District 9 will launch on April 10. The 540-unit, 99-year leasehold project off Irwell Bank Road will be CDL's first launch this year.
The bulk of the units at Irwell Hill Residences are smaller ones: 438 units, or 81 per cent of the project, are studio apartments, one-bedroom units and two-bedroom units.
Sizes range from 398 square feet (sq ft) for a studio to 1,582 sq ft for a four-bedroom premium unit. The three penthouses are each between 2,200 and 2,600 sq ft.
Indicative prices start at S$998,000 for a studio, about S$1.1 million for a one-bedroom plus study, S$1.4 million for a two-bedder, S$2.1 million for a three-bedder, and over S$4 million for a four-bedroom premium unit with a private lift.
CDL executive vice-president and head of property development, Lee Mei Ling, said that the "sweet spot" pricing of about S$1 million to S$2 million per unit is expected to be "very attractive" to both owner-occupiers and investors. "These are very palatable prices", considering the prestigious location," she added.
The luxury project comprises two 36-storey towers on an elevated plot, with four existing heritage raintrees and a champagne gold pixel-patterned facade.
To support residents working from home, the function rooms are equipped to host meetings and conferences.
Irwell Vista, located on level 24 of both towers, features a purpose-designed workspace, with workstations fitted with WiFi and charging points. These design features were conceptualised last year, when the remote-work trend gained pace.
