Sing Holdings-Sunway JV tops bids for second Chuan Grove site, eyes amalgamation
Its offer of S$1,331 psf ppr in the latest state tender is lower than the S$1,376 psf ppr it paid for an adjacent site in July
[SINGAPORE] Sing Holdings and Sunway Developments defended their turf in the Lorong Chuan MRT station locale at a state tender that closed on Thursday (Sep 4).
They teamed up to place the top bid for a second 99-year leasehold private-housing site in Chuan Grove. Their bid of S$623.91 million worked out to about S$1,331 per square foot per plot ratio (psf ppr). This was 3.3 per cent lower than their winning bid of S$1,376 psf ppr for an adjacent site in a state tender in July.
The second Chuan Grove site drew five bids, against seven for the first one. Analysts noted that the first plot is closer to the MRT station, and has a more regular shape than the second one.
The number of bids and the top bid in the latest government land sales (GLS) tender were within the range of expectations of property consultants polled by The Business Times earlier this week.
The second plot can yield 505 private housing units and the first, 555 units.
At the latest tender on Sep 4, the top bid was 2.9 per cent above the second-highest bid, at S$1,293 psf ppr, from a unit of China Overseas Land & Investment.
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Upsized project
Lee Sze Hao, chief executive officer of mainboard-listed Sing Holdings, said that from the outset, the joint venture with Sunway had been keen to acquire both plots. “If we are awarded this second Chuan Grove site, we would like to amalgamate it with the earlier one, subject to regulatory approvals and the timeline required to obtain such approvals.”
He added: “We would like to develop a single project with a total of 1,055 units across five blocks of up to 27 storeys, on the combined site. This would create synergies in design, including providing more facilities in the common areas.”
Leonard Tay, research head at Knight Frank Singapore, said: “The possibility of an upsized Chuan Grove project could attract potential buyers, such as retirees who wish to right-size from the landed areas in Serangoon and in Ang Mo Kio Avenue 1 (Tai Hwan and Mei Hwan areas).”
OrangeTee chief executive officer Justin Quek pointed to a large catchment of potential HDB upgraders from the nearby areas of Serangoon, Bishan and Ang Mo Kio.
Analysts generally described the participation for the second Chuan Grove site as still healthy. Mogul.sg chief research officer Nicholas Mak noted that all five bidders in the latest tender had also taken part in the tender for the first Chuan Grove site.
Huttons Asia CEO Mark Yip said that the “strong take-up at project launches after the June school holidays has added impetus for developers to replenish their land bank”.
Wong Siew Ying, head of research and content at PropNex, said that the rebound in primary market sales could also have boosted confidence in the Chuan Grove sites. Between Jan 1 and Aug 24 this year, developers sold nearly 7,600 new private homes (excluding executive condo units). This has surpassed the annual figures for each of the last three years: 6,469 units in 2024, 6,421 units in 2023 and 7,099 units in 2022.
Giving his take, ERA Singapore CEO Marcus Chu said: “There is currently significant optimism in Singapore’s residential market, with numerous opportunities for developers across all segments.”
Tricia Song, head of research for South-east Asia at CBRE, while describing the outcome in the latest state tender as “relatively in line with market expectations”, said that the five bids received “pale in comparison” to recent suburban private residential GLS sites of comparable size. She was referring to the sites in Lakeside Drive (575 units) and Bayshore Road (515 units), which drew six and eight bids, respectively.
Among other factors, she said “developers could have also factored in competition from the earlier Chuan Grove site, though there is apparent demand for more housing in the location”. “The nearby project Chuan Park (916 units) saw robust take-up over its launch weekend in November 2024, moving 696 units (76 per cent) at an average price of S$2,537 psf. To date, 779 units (85 per cent) have been sold at a median price of S$2,592 psf,” Song added.
That said, she noted that the second Chuan Grove plot is within walking distance of Lorong Chuan MRT station, and is in “a tested location with attractive attributes”, including its proximity to primary schools. Examples include St Gabriel’s Primary School and Kuo Chuan Presbyterian Primary School. Also nearby are Australian International School, Nanyang Junior College, Yangzheng Primary School, Zhonghua Secondary School and CHIJ Our Lady of Good Counsel.
Tay of Knight Frank noted that Serangoon and Bishan MRT stations are just a stop away from the two Chuan Grove plots, providing access to the Circle, North-East and North-South lines and boosting the two sites’ inherent locational strengths.
In a similar vein, Wong of Propnex said: “Commercial offerings can be found at the NTP+ mall next to the Chuan Grove sites, as well as in Bishan town and Serangoon Central.”
Tay estimated that selling prices at launch for a project on the amalgamated Chuan Grove pair of sites, could average between S$2,900 psf and S$3,000 psf.
Also participating at Thursday’s tender were Intrepid Investments, which teamed up with TID Residential to put in a S$1,255 psf ppr bid.
Sim Lian Land partnered Sim Lian Development to place a bid of S$1,240 psf ppr.
Japura Development – linked to CK Asset, which was founded by Hong Kong tycoon Li Ka-shing – placed the lowest bid of S$1,001 psf ppr.
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