The recent tenders for two government land sale (GLS) sites at Lentor Central and Champions Way concluded on September 12. The Champions Way site, capable of yielding 350 units, attracted six bids, with City Developments Limited (CDL) submitting the highest bid of $294.889 million, equating to a land rate of $904 per square foot per plot ratio (psf ppr). This bid was 8.3% higher than the second-highest offer from TID (a joint venture between Hong Leong Group and Mitsui Fudosan), which was $272.26 million or $835 psf ppr. CDL has named the project at Champions Way, Norwood Grand.
This site is notable as the first non-executive condominium (EC) GLS tender in Woodlands since 2011 when a plot at Woodlands Avenue 2 and Rosewood Drive was sold for $367 psf ppr and developed into the 689-unit Parc Rosewood. CDL intends to use this site to replenish its landbank, contributing to a stable launch pipeline. Sherman Kwek, CDL group CEO, emphasized the rarity and significance of this opportunity to contribute to Woodlands’ rejuvenation plans.
In contrast, the Lentor Central plot received only two bids. The Champions Way site’s interest from developers indicates its potential, with Wong Siew Ying, head of research and content at PropNex Realty, noting it had the highest number of bids for a non-EC site this year. However, there was a significant disparity between the top and lowest bids, with CDL’s bid being 45% higher than the lowest bid of $203.33 million ($623 psf ppr) from Innova Investments Limited. This discrepancy suggests differing risk assessments among developers regarding the site.
Lam Chern Woon from Edmund Tie, commented that this wide range of bids reflects varied expectations in the property market. He believes the site will benefit from the growth of the Woodlands Regional Centre, demand from local upgraders, and its proximity to the Woodlands South MRT Station on the Thomson-East Coast Line. Leonard Tay, head of research at Knight Frank Singapore, predicted the future selling price for the project at the site could start at just under $2,000 psf, representing a significant premium over the median resale price of $1,301 psf at Parc Rosewood this year. PropNex’s Wong also estimates the future average selling price to be above $1,900 psf, potentially setting a new benchmark for new launches in the Woodlands area.
