Wing Tai Holdings Submits Top Bid 1325 Psf Ppr Residential Gls Site River Valley Green
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Wing Tai Holdings’ subsidiary, Winchamp Investment, has secured the winning bid of $464 million for the 99-year leasehold government land sales (GLS) site at River Valley Green (Parcel A). The bid translates to a land rate of $1,325 per square foot per plot ratio (psf ppr). There was only one other bid for the 100,009 sq ft site from Hong Realty, a subsidiary of Hong Leong Group, with a bid of $444.89 million or $1,271 psf ppr.
The GLS site at River Valley Green (Parcel A) has a plot ratio of 3.5 and a maximum gross floor area of 350,035 sq ft. It is expected to yield up to 380 residential units. The site is conveniently located near Great World City MRT Station on the Thomson-East Coast Line and is in close proximity to Great World City.
Wong Siew Ying, head of research and content at PropNex Realty, notes that Wing Tai’s bid of $1,325 psf ppr is higher than the $1,202 psf ppr bid from City Developments Ltd (CDL) and Mitsui Fudosan for another GLS site on Zion Road in April.
Despite its smaller size compared to other GLS sites in the River Valley and Zion Road areas, and its prime location near the Great World City Mall and MRT station, the site only attracted two bids, according to Marcus Chu, CEO of ERA Singapore. This suggests that developers are being cautious when it comes to land acquisition, he adds.
Leonard Tay, head of research at Knight Frank Singapore, agrees and cites the high interest rates and cooling measures as reasons for the lack of developer interest in some GLS sites.
Mark Yip, CEO of Huttons Asia, adds that developers will have to consider the potential supply of 1,300 new homes from the recently awarded Zion Road (Parcel A) site, as well as the upcoming tender for Zion Road (Parcel B) before making a decision to bid.
The nearby River Valley (Parcel B) site is currently on the Reserve List, and if it is triggered and awarded, could potentially offer an additional 360 homes and 220 serviced apartments.
There have been recent new projects in the area, such as the 540-unit Irwell Hill Residences by CDL, which is 99.6% sold, and The Avenir, a fully sold 376-unit freehold development by Hong Leong Holdings, Guocoland, and Hong Realty, according to caveats from URA.
If awarded at the land rate of $1,325 psf ppr, Wing Tai could face breakeven costs estimated to be between $2,300 psf and $2,500 psf, says Chia Siew Chuin, head of residential research at JLL.
Overall, the bidding results for the GLS site at River Valley Green (Parcel A) reflect cautious market sentiment among developers. With potential upcoming supply of new homes in the area, developers are proceeding with caution when it comes to land acquisition.