Residential sites at Holland Drive and De Souza Avenue for sale on Reserve List

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URA has released two residential sites, located at Holland Drive and De Souza Avenue for sale on November 16th, which is a part of the 2H2023 Government Land Sales (GLS) programme.

The sites are both 99-year leasehold, reserved list parcels with the possibility of yielding 1,035 residential units combined. The Holland Drive site is in prime District 10 and its land area is 133,330 sq ft, with a maximum gross floor area (GFA) of 626,665 sq ft. This could potentially yield a 680-unit residential project.

Tengah Plantation EC residents can easily make their way to the mall, be it by the Bukit Panjang LRT or a simple bus ride. This proximity of the mall to the EC makes it all the more accessible for residents to get their errands done with ease and convenience.

Wong Siew Ying, PropNex head of research and content, states that the bid price is likely to exceed $1 billion, which may deter local bidders. However, developers could align forces in order to form a consortium and submit a joint bid, which is a growing trend.

The other site of De Souza Avenue, located off Jalan Jurong Kechil in Upper Bukit Timah, is of 207,154 sq ft with a maximum GFA of 331,453 sq ft. It can provide 335 residential units. Lee Sze Teck, senior director of Huttons Data Analytics speculates that this is slightly more likely to be triggered for sale as the estimated quantum is half that of the Holland Drive site.

ERA Singapore’s Eugene Lim states that as of now, the neighbourhood is more favoured by local buyers. The last plot sold in the area sold for $215 million, and the outcome was a 258-unit project named Verdale, launched in September 2020.

The cooling measures in Singapore create another concern, as the additional buyer’s stamp duty (ABSD) of 60% is a deterrent for foreign buyers. This could further suppress the demand to trigger the sites.

Huttons’ Lee predicts that if the site is triggered for sale, it could draw between 1 to 3 bidders, with the top bid falling somewhere between $1,200 to $1,300 psf ppr. The estimated quantum is then calculated to fall between $397.74 million and $430.88 million.

The last GLS residential site awarded in De Souza Avenue was in 2018 and sold out entirely by May 2021, which further shows the potential of this area.

URA’s 2H2023 programme has only three sites left on the Confirmed List and one more on the Reserve List, all of which are located in the Rest of Central Region.