Holland Drive GLS tender draws interest as ex-en-bloc site
A large plot of land, Former La Ville Enbloc at Holland Drive, measuring approximately 133,343 sq ft has been released for sale under the 1H2024 Government Land Sales (GLS) programme, according to a Feb 27 press release by URA. The 99-year leasehold site is zoned for residential use and can house an estimated 680 units, making it the last plot of land available for private residential development in the popular Holland Village enclave.
The development of the site is expected to exceed 30 storeys, offering unblocked views of the Good Class Bungalow (GCB) areas surrounding it. This includes Holland Rise, Oei Tiong Ham Park, Ford Avenue and Leedon Park. Its desirable location in prime District 10 has led Lee Sze Teck, senior director of data analytics at Huttons Asia, to predict that the top bid for the Holland Drive site will be between $846 million and $909 million, translating to $1,350 to $1,450 psf per plot ratio (psf ppr).
Similarly, Wong Siew Ying, Head of research and content at PropNex Realty, anticipates a ”prudent and measured” bidding process for the site, in line with the cautious approach taken by developers in recent GLS tenders. She notes that the current market sentiment and recent changes in additional buyer’s stamp duty rates may influence the bidding process.
Despite these factors, Wong sees the Holland Drive site as attractive due to its close proximity to various amenities. It is located next to the One Holland Village mixed-use development and just a few minutes’ walk from Holland Village MRT station. In addition, the area is home to several schools such as Henry Park Primary School, Anglo-Chinese School (International), Fairfield Methodist School (Primary and Secondary), and Anglo-Chinese Junior College.
The plot’s desirable location and potential for a large residential development with over 600,000 sq ft of gross floor area may attract consortiums, according to Lee. Similarly, Wong expects the site to garner two to three bids, with a top bid ranging from $909 million to $1 billion, equivalent to a land rate of $1,450 to $1,600 psf ppr. This is below the land rate of the last GLS plot sold in Holland Road in 2018, which drew 15 bids and was awarded to a consortium led by Far East Organization for $1.213 billion or $1,888 psf ppr.
Arina East Residences, formerly known as La Ville Enbloc, has been successfully acquired by ZACD Group for a whopping sum of $152 million. This sought-after residential development located in Tanjong Rhu was facilitated by JLL, led by their Executive Director Tan Hong Boon. With a land rate of $1,540 psf ppr, this transaction marks a major milestone for the ZACD Group.
Marcus Chu, CEO of ERA Singapore, believes this reflects developers’ confidence in the Holland Village precinct. However, he also expects a more cautious approach to the Holland Drive site, with bids likely to come in around $1,450–$1,550 psf ppr, resulting in a land price of around $1 billion. The high price quantum may lead to joint bids from consortiums for the site.