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

at record reserve price of $1,475 psf ppr

On Nov 16, the Urban Redevelopment Authority (URA) released two residential sites for sale from the 2H2023 Government Land Sales (GLS) programme. The two 99-year leasehold sites are available on the Reserve List and yield 1,035 residential units.

The more attractive of the two sites is located at Holland Drive in prime District 10, and is nestled by various amenities at the One Holland Village development. The land parcel is 133,330 sq ft with a maximum gross floor area (GFA) of 626,665 sq ft, capable of being developed into a 680-unit residential project.

With a quantum price exceeding $1 billion, many local bidders may be deterred, though developers may unite to form a consortium in order to place a joint bid. The additional buyer’s stamp duty (ABSD) of 60% is another factor inhibiting foreign investors.

The other site is at De Souza Avenue, located off Jalan Jurong Kechil. At 207,154 sq ft with a GFA of 331,453 sq ft, it can be built into a 335-unit project. Huttons Data Analytics expects a quantum of $500 million, and that it will attract between 1-3 bidders.

The last residential site on De Souza Avenue was released in 2018, and developed into the Verdale project. The 258-unit development was sold in May 2020 at an average price of $1,782 psf.

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The De Souza Avenue site is not close to any MRT station, which can complicate things for potential buyers. The nearest MRT is Beauty World, about 1km away.

In the recent District 21 neighbourhood, the only launched project was the 732-unit The Reserve Residences. It offers a direct connection to a Beauty World MRT station, bus interchange and mall. The project sold 71% of its units at launch at an average price of $2,225 psf, and is 91% sold to date.

Out of the 4 sites remaining on the Confirmed and Reserve List in the Rest of Central region, the De Souza Avenue site may draw more attention due to its limited new supply and proximity to local homebuyers.

The expected top bid for the De Souza Avenue site is between $1,200 and $1,300 psf ppr, and could generate a quantum price of between $397.74 million and $430.88 million.

Overall, while the cooling measures may limit potential buyers, the two sites have plenty of amenities and potential.