Frasers Property, Mitsubishi Estate JV pips CDL with S$610.75 million top bid for Kallang plot
The highest bid of S$1,415 psf ppr is just 0.7% above CDL’s offer; site fetches four bids
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[SINGAPORE] A consortium comprising Frasers Property and Mitsubishi Estate has placed the top bid of S$610.75 million, or about S$1,415 per square foot per plot ratio (psf ppr), for a private housing site next to Kallang River.
The state tender for the 99-year leasehold site near Kallang MRT station drew four bids, at the lower end of the four to nine bids predicted by analysts whom The Business Times polled on Monday (Apr 6).
Analysts attributed this to a cocktail of factors, including part of the site facing industrial buildings and a lack of primary schools within 1 km of the site.
Newmark’s head of research Wong Shanting said: “Growing clarity on the wider economic impact of the Middle East war has driven heightened uncertainty in the market.”
However, the top bid at the close of the tender on Tuesday was within S$1,200 psf ppr to S$1,600 psf ppr as forecast by the analysts.
The site can generate about 470 private homes.
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The top bid was just 0.7 per cent higher than the second-highest bid of S$1,405 psf ppr from City Developments.
Also bidding at the Urban Redevelopment Authority (URA) tender was a tie-up between Hong Leong Holdings unit Intrepid Investments and TID Residential; it offered S$1,301.49 psf ppr for the site.
A partnership between Wing Tai unit Winrich Investment and Metro Holdings’ Metrobilt Construction placed the lowest bid of S$1,242.32 psf ppr.
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“There are two residential sites immediately south of the Kallang Close plot.”
NICHOLAS MAK OF MOGUL.SG
Knight Frank Singapore research head Leonard Tay said the surrounding industrial setting for the Kallang Close site could temper its positioning among some potential buyers for the future condominium on the site, particularly when compared with more established locations where the surroundings are all residential in land-use.
“This was a likely consideration in the site receiving just four bids, down from the six for the Dover Drive plot and five each for the Tanjong Rhu, Lentor Central and Dairy Farm Walk sites this year,” Tay added.
Record launch price in Kallang?
He said the top bid for the Kallang Close plot suggests that the selling price at launch could possibly start from S$2,900 psf and average just above S$3,000 psf.
“Achieving this average pricing would depend on how effectively the developer capitalises on the waterfront aspect through design, unit facing, tower layout, positioning and finishes,” he noted.
Frasers Property and Mitsubishi Estate noted after the URA announced the provisional tender results on Tuesday evening that this is the first private residential government land sales (GLS) site to be launched in the Boon Keng, Kallang Bahru and Kampong Bugis precincts in 12 years, “underscoring the limited supply of new private housing in the area”.
On behalf of the consortium, Soon Su Lin, chief executive officer of Frasers Property Singapore, said the site presents a “rare opportunity to deliver a top-quality waterfront residential development with a first-mover advantage”, being the first to benefit from the long-term transformation of the nearby Kampong Bugis and Kallang Alive precincts.
The plot is bounded by Boon Keng Road and a new road, to be named Kallang Close, in Kallang Planning Area. The site is located next to Kallang Industrial Estate to the west, and Kallang River to the east.
The land parcel can yield a maximum gross floor area (GFA) of 431,611 sq ft, of which a minimum 5,382 sq ft has to be set aside for a childcare centre.
The site is 300 to 400 m to Kallang MRT station on the East-West Line, and 600 to 700 m to Bendemeer station on the Downtown Line.
Schools, amenities
Besides the neighbouring industrial properties, another drawback of the site is that there are no popular primary schools within a 1 km radius, said CBRE research head for Singapore and South-east Asia Tricia Song.
That said, Wong Siew Ying, head of research and content at PropNex, noted that several schools can be found about 1 to 2 km from the Kallang Close plot such as Geylang Methodist School (Primary), Farrer Park Primary School, Hong Wen School and Bendemeer Primary School.
Nearby amenities include the Upper Boon Keng Market and Food Centre.
Kallang MRT station will incorporate a new bus interchange. It is being developed as part of the Kallang Horizon Build-To-Order Housing & Development Board (HDB) flat project, with amenities such as a childcare centre, shops and public space.
The site is about 500 m from Aperia mall, which has a Cold Storage supermarket, eateries and retail shops. Kallang Wave Mall in Stadium Place has a FairPrice Xtra supermarket, among other offerings.
Analysts noted that there have not been any recent GLS sites launched in the immediate vicinity of the Kallang Close site.
For comparison, CBRE’s Song pointed to city-fringe private housing sites sold at state tenders in the fourth quarter of 2025 and first quarter this year.
A site in Dorset Road near Farrer Park MRT station fetched a top bid of about S$1,338 psf ppr at a state tender that closed in October 2025. A Tanjong Rhu Road plot drew a top bid of S$1,455 psf ppr at a February tender this year.
Other recent comparables include the Telok Blangah Road site which fetched S$1,326 psf ppr in November, and the residential with commercial at first storey site in Dover Drive – opposite Fairfield Methodist School (Primary) and near one-north MRT station – which drew a top bid of S$1,556 psf ppr in March 2026.
Justin Quek, deputy group CEO of Realion (OrangeTee & ETC) Group, said that in 2025, there were only two existing new-launch projects in Kallang Planning Area, both freehold.
The Arina East Residences in Tanjong Rhu Road and The Arcady at Boon Keng in Saint Barnabas Lane transacted at average prices of S$2,918 psf and S$2,622 psf, respectively.
Pent-up demand
Observers point to strong demand for the future private housing project on the Kallang Close site, including from HDB upgraders.
Said ERA Singapore CEO Marcus Chu: “A key demand driver will come from HDB upgraders in Kallang/Whampoa, where 176 million-dollar flat transactions were recorded in 2025, reflecting a sizeable pool of buyers with strong housing equity.”
In a similar vein, Quek said: “Demand for homes in Kallang have generally remained strong through the years, as observed from the strong application rates of BTO flats in the area. With around 1,000 four-room flats set to fulfil their minimum occupation period from 2026 to 2028 in Kallang/Whampoa, some of the buying demand for the future private housing project on the Kallang Close site may come from HDB upgraders living nearby.”
The 123,314.47 sq ft Kallang Close land parcel is part of a cluster of residential projects to be developed along the Kallang River waterfront.
Nicholas Mak, chief research officer at Mogul.sg, noted that based on the Urban Redevelopment Authority’s Master Plan, there are two residential sites immediately south of the Kallang Close plot.
All three plots have a 3.5 plot ratio (ratio of maximum GFA to site area).
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