CDL, Woh Hup tie-up tops Tanjong Rhu site tender with S$709.25 million bid at S$1,455 psf ppr
The 99-year leasehold private housing site fetches five bids
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[SINGAPORE] The first private-housing site in Tanjong Rhu put up for sale at a state tender in nearly 30 years has fetched a higher-than-expected top bid of S$1,455 per square foot per plot ratio (psf ppr).
That land rate, set by City Developments Ltd (CDL) and Woh Hup’s S$709.25 million bid on Thursday (Feb 5), is the highest for a 99-year government land sale (GLS) pure private residential site in the Rest of Central Region, according to Tricia Song, head of research for Singapore and Southeast Asia at CBRE.
The top bid surpassed the S$1,360 psf ppr fetched for the Lorong 1 Toa Payoh site at a state tender that closed in November 2023. That site was bought by a CDL, Frasers Property and Sekisui House consortium and is being developed into The Orie.
Analysts polled by The Business Times had predicted that the top bid for the Tanjong Rhu site would be in the range of S$1,200 to S$1,400 psf ppr.
The five bids received are within the two to nine the analysts had expected.
The top bid by the CDL-Woh Hup tie-up was 2.5 per cent above the second highest bid, of about S$1,419 psf ppr from a partnership between Sunway MCL and Sinarmas Land unit AFP Land.
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CDL’s group chief executive officer, Sherman Kwek, was elated with the narrow margin.
He highlighted the site’s “strategic position within the Kallang Alive precinct, combined with excellent waterfront views and good connectivity”.
If awarded the site, the joint venture will explore a residential development comprising about 520 units across three 26-storey residential blocks, and with an integrated childcare centre.
“Designed to maximise view corridors, the development is envisioned with a north-south orientation to capture views of The Kallang, Marina Bay and the sea,” Kwek added.
The site is near several established schools, including Kong Hwa School, Dunman High School and Chung Cheng High School (Main), CDL said in a media release.
The CDL-Woh Hup consortium is structured on a 90:10 equity split.
It is the first joint venture between the duo, although Woh Hup has been the main contractor for various CDL projects.
Also bidding at Thursday’s tender, conducted by the Urban Redevelopment Authority, were Sim Lian Land and Sim Lian Development, which offered S$1,416 psf ppr.
A tie-up involving GuocoLand, Intrepid Investments and TID Residential bid S$1,380 psf ppr.
Kingsford placed the lowest bid, at S$1,235 psf ppr.
Price consensus
Nicholas Mak, chief research officer at Mogul.sg, said the 17.8 per cent difference between the highest and lowest bids is a “fairly narrow range, reflecting the consensus in the land valuation and the price of the future residential development on this site”.
The plot – located next to the Singapore Swimming Club – is between Tanjong Rhu and Katong Park MRT stations on the Thomson-East Coast Line. Both stations are about 600 to 700 metres from the site.
It is in an area with a mix of private and public housing developments.
Wong Siew Ying, head of research and content at PropNex, said: “The heightened interest for this site is not surprising (as it is) a rare opportunity for developers to offer fresh private housing in the neighbourhood.”
The last GLS site sold in Tanjong Rhu was in November 1997; that plot was developed into the Water Place project.
“There has been a dearth of new mid-sized to large condo projects launched in that area, potentially creating pent-up demand for private housing among buyers, including HDB upgraders,” said Wong of PropNex.
Near upcoming HDB flats
Giving her take, Newmark head of research for Singapore, Wong Shanting, said: “Tanjong Rhu has shed its image of inconvenience in recent years with ongoing rejuvenation plans, which helps explain why developers were willing to pay a premium for this site.”
She highlighted that just across the road from the site are the Tanjong Rhu Riverfront build-to-order HDB flat projects, which should see more amenities offering convenience for future residents. “Additionally, the Kallang Alive precinct (being) in close proximity will offer more sports facilities and water activities,” she added.
In a similar vein, CBRE’s Song said: “While there will be new public housing clusters around this site, potentially eroding the private housing nature of Tanjong Rhu, buyers may be enticed by more amenities and future upgrader demand that usually comes with HDB estates.”
Mark Yip, CEO of Huttons Asia, estimates the selling price of the future project on the Tanjong Rhu site may start from S$2,900 psf.
Knight Frank Singapore research head, Leonard Tay, said the average price could be around S$3,000 to S$3100 psf.
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