CDL places S$1,132 psf ppr top bid for plot next to Lakeside MRT station

[SINGAPORE] A state land tender for a plum 99-year private housing site next to Lakeside MRT station in Jurong West drew a healthy showing of six bids on Tuesday (Jun 3).

This was within the range of two to eight bids analysts had forecast in a poll conducted by The Business Times on Monday.

The top bid by Singapore residential heavyweight City Developments (CDL) – S$608 million or S$1,132.08 per square foot per plot ratio (psf ppr) – was also within the range of S$900 to S$1,250 psf ppr the analysts had predicted.

CDL’s bid was 10.4 per cent above the second-highest bid of about S$1,025 psf ppr, from a partnership between Frasers Property and Mitsubishi Estate.

Analysts pointed out that the top bid was 24.5 per cent above the lowest bid, at $909 psf ppr, from Sim Lian Land and Sim Lian Development.

“The gap reflects mixed market sentiments among the participating bidders,” said ERA Singapore chief executive officer Marcus Chu.

Wong Siew Ying, head of research and content at PropNex, said the gap suggests “differing assessment of the risks and opportunities for this plot among developers”.

For sure, the Lakeside Drive plot has many positive attributes, including its location at the doorstep of an MRT station and its proximity to Jurong Lake Gardens, which will provide scenic views to residents in the future project on the site.

There are also a number of schools in the area, and the locale stands to benefit from the development of the Jurong Lake District (JLD).

“That said, there could potentially be some uncertainty as to the depth of private housing demand, given the relatively slower sales at a couple of launches in the Jurong area,” said Wong, but she acknowledged that those projects were not near the MRT station.

She was alluding to The Lakegarden Residences and Sora condo developments launched in 2023 and 2024, respectively. These 99-year leasehold projects are being developed on the former collective sale sites of the Lakeside Apartments and Park View Mansions, respectively.

The six bids for the Lakeside Drive site in Tuesday’s tender by the Urban Redevelopment Authority was a much better outcome than the zero turnout at its tender for the Media Circle Parcel B plot that closed on Apr 29.

However, Tricia Song, head of research for Singapore and South-east Asia at CBRE, said the number of bids for the latest tender pales in comparison to the nine, 12 and 14 bids received for earlier nearby sites – on which now stand Lake Grande, Lakeville and The Lakefront Residences. They were tendered in 2015, 2013 and 2010, respectively.

She said: “The relatively lower number of bids compared with a decade ago for 99-year GLS (government land sale) sites in the immediate locale of Lakeside MRT station could be partly a reflection of waning enthusiasm towards the JLD, envisioned as the largest mixed-use business district outside Singapore’s city centre.

“JLD now has an uncertain development timeline following the government’s decision last year not to award the high-profile master developer site for the district.”

The plot on offer in Tuesday’s tender is zoned residential with commercial use on the first storey. It can be developed to a maximum gross floor area (GFA) of 537,065 sq ft.

The plot can yield about 575 private homes. The commercial component is capped at 10,764 sq ft GFA, of which a minimum 7,535 sq ft has to be for supermarket use.

Said Huttons Asia CEO Mark Yip: “The commercial use at first storey will complement the limited retail offerings at the Lakeside MRT station, and the HDB neighbourhood across the road. It will provide added convenience to residents as they do not need to travel for their daily needs.”

CDL’s Group CEO, Sherman Kwek, said the Lakeside Drive plot “presents a rare and valuable opportunity to expand our presence in the West”. “This site will be a strategic addition to our development pipeline.”

The property and hotel group said that if awarded the site, it plans to develop a “thoughtfully curated project” comprising five 16-storey residential blocks housing about 575 units, complemented by a ground-floor retail podium. “The proposed development aims to offer unblocked views of Jurong Lake Gardens,” it added.

Nearby schools include Rulang Primary School, Shuqun Primary School, Yuhua Secondary School and Yuan Ching Secondary School.

Nicholas Mak, chief research officer at Mogul.sg, expects the development on the site to be launched between late 2026 and mid-2027, at about S$2,600 to S$2,700 psf.

Also bidding at Tuesday’s tender was a tie-up between units of CapitaLand Development and Sing Holdings, which offered S$529 million or S$985 psf ppr.

Wee Hur Development bid S$938 psf ppr.

Intrepid Investments and TID Residential offered S$922 psf ppr.