Subdued Bids For Orchard Boulevard Land Sales Site
Cautious bids from property developers were observed for a prime Orchard Boulevard Land Sales Site at a state tender on Thursday (1 February). This reflects the higher risk associated with residential projects in the Core Central Region (CCR) in the current market after doubling in Additional Buyer’s Stamp Duty (ABSD) for foreign buyers.
A UOL Group-Singapore Land JV topped bids for a small Orchard Boulevard Land Sales plot with a S$428.3 million bid valuing the residential land parcel at S$1,616.75 per square foot per plot ratio (psf ppr). The bids were close and came in at lower than market expectations as the offers were lower by 30 per cent to 40 per cent than a Cuscaden Road land sales site in the same district that was sold in 2018.
The top bid for the Cuscaden Road land sales site of S$410 million – some S$30.6 million higher than the next one – by Amberden, FEC Properties and Orchard Square worked out to be equivalent to S$2,377 psf ppr. The 99-year residential land plot is now on sale as Cuscaden Reserve.
The tight-bid spread across the four bids for the Orchard Boulevard land sales site showed that developers’ are more prudent amidst a more challenging business environment. This is also the first land tender to close in the CCR since the increase of ABSD in April 2023.
The Orchard Boulevard land sales site can yield an estimated 280 residential units, with commercial units on the first floor. The 99-year leasehold site is 7,031.4 square metres (sqm) and has a maximum gross floor area of 24,610 sqm.
Liam Wee Sin, group chief executive of UOL, said it plans to develop a high-rise luxury development with 36 storeys or more together with SingLand. “The site has very attractive locational attributes and direct MRT connection to the Orchard Boulevard station. This Orchard Road site is also a timely addition to our luxury collection in sought-after locations such as Nassim, Meyer and Watten,” said Liam.
The freehold Watten House project surprised on the upside when it sold 57 per cent, or 102 out of 180 units, at a private preview in November 2023 at an average price of S$3,230 psf.
Analysts put the break-even cost for the Orchard Boulevard project in the range of S$2,500 psf to S$2,900 pf, and foresee selling prices of S$3,200 psf to S$3,500 psf. “With a possible average price for the project above S$3,000 psf when launched, this price range might just prove not only palata-ble, but also attractive for Singaporean homebuyers and permanent residents, whether for occupation or investment, and therefore be a compelling project in the prime Orchard Road area,” said Knight Frank’s Tay.
The Orchard Boulevard location could also pique the interest of investors looking to capitalise on medical tourism, said Marcus Chu, ERA’s chief executive officer.
(Source: The Straits Times)
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