The Urban Redevelopment Authority (URA) has just launched the land tender for a land parcel at Orchard Boulevard under the 2H 2023 Government Land Sales (GLS) programme. The site has an estimated area of 7,031.5 sqm and a Gross Plot Ratio (GPR) of 3.5, which can yield about 280 housing units and a commercial space of 500 sqm.
The nearest land parcel sold under the GLS programme is the current Cuscaden Reserve at Cuscaden Road, which was awarded on 17 May 2018 to Amberden Pte Ltd, FEC Properties Pte Ltd and Orchard Square Pte. Ltd. at the tender price of S$409,999,999.99, or S$2,377 psf ppr. This site was keenly contested with nine bidders. Another site in the vicinity is at Irwell Bank Road parcel, which is the current Irwell Hill Residences. The land parcel was awarded on 14 January 2020 to CDL Perseus Pte. Ltd. at a tender price of S$583,888,000 or S$1,515 psf ppr.
The new site is well-located near the Orchard Road shopping belt and will probably be connected to Orchard Boulevard MRT on the Thomson-East Coast Line (TEL). The future development will enjoy scenic views overlooking the neighbouring landed homes. Residents will also enjoy greenery at the nearby Singapore Botanic Gardens which is just a short drive or one MRT station away.
GLS sites in the Core Central Region (CCR) remain limited as the bulk of supply is usually in the Rest of Central Region (RCR) or Outside of Central Region (OCR). The current launch may attract developers who wish to buy land in the prime location without going through an en-bloc sale. The price quantum is also manageable as the size of the development is only 280 units.
However, developers may remain cautious given the prevailing 60 per cent Additional Buyer’s Stamp Duty (ABSD) imposed on foreigners and higher ABSD for investors. We anticipate2 to 5 bidders for this site, at a highest bid price betweenS$1,900 to S$2,100 psf ppr.