Winchamp Investment, a subsidiary of Wing Tai Holdings, has emerged victorious in securing the 99-year leasehold government land sales (GLS) site at River Valley Green (Parcel A) with a top bid of $464 million. This translates to a land rate of $1,325 per square foot per plot ratio (psf ppr) for the 100,009 sq ft site. The tender attracted just one other bidder, Hong Realty, a subsidiary of Hong Leong Group, which offered $444.89 million or $1,271 psf ppr.
The River Valley Green (Parcel A) site boasts a plot ratio of 3.5 and a maximum gross floor area of 350,035 sq ft, allowing for the development of up to 380 residential units. It is conveniently located next to Great World City MRT Station on the Thomson-East Coast Line and near Great World City shopping mall.
Wong Siew Ying at PropNex Realty, highlighted that Wing Tai’s bid of $1,325 psf ppr surpasses the $1,202 psf ppr submitted by City Developments Ltd (CDL) and Mitsui Fudosan for another GLS site on Zion Road in April. Marcus Chu, CEO of ERA Singapore, noted the limited number of bids for this site despite its strategic location and small land area compared to other GLS sites in River Valley and Zion Road. He suggested that developers are being cautious in land acquisition.
See: Norwood Grand Condo
Leonard Tay at Knight Frank Singapore, pointed to the high interest rate environment and current cooling measures as factors contributing to the restrained bidding activity for some GLS sites. Mark Yip, CEO of Huttons Asia, added that developers are also considering the potential supply of 1,300 new homes from recently awarded sites at Zion Road (Parcel A) and another GLS site at Zion Road (Parcel B), whose tender is set to close next month. Additionally, another site at River Valley (Parcel B) is on the Reserve List, which, if triggered and awarded, could add 360 homes and 220 long-stay serviced apartments.
Recent developments in the vicinity include the 540-unit Irwell Hill Residences by CDL and The Avenir, a 376-unit freehold project by Hong Leong Holdings, Guocoland, and Hong Realty. According to URA caveats, Irwell Hill Residences is 99.6% sold, and The Avenir is fully sold.
Chia Siew Chuin at JLL, estimated that if Wing Tai secures the site at $1,325 psf ppr, the developer’s breakeven costs could range between $2,300 psf and $2,500 psf.
Wing Tai Holdings’ successful bid for the River Valley Green site signifies a strategic move to enhance its land bank and capitalize on the prime location near Great World City despite the cautious market sentiment and competitive landscape.
