The Urban Redevelopment Authority (URA) has recently unveiled two promising residential sites at Holland Drive and De Souza Avenue, marking a significant development in Singapore's real estate landscape.

These offerings, part of the 2H2023 Government Land Sales (GLS) programme, hold the potential to reshape the housing market with their strategic locations and unique attributes.

Residential units and leasehold

Embracing a 99-year leasehold tenure, both sites are positioned on the Reserve List, anticipating the creation of a total of 1,035 residential units. This move aligns with URA's ongoing efforts to meet the growing demand for quality housing in Singapore.

Prime location of Holland Drive site

Notably, the Holland Drive parcel, nestled in the prestigious District 10, emerges as the more coveted of the two. 

Situated in proximity to the One Holland Village mixed-use development and within walking distance of the Holland Village MRT station, this prime location adds a layer of desirability for potential homeowners.

Holland Drive site details

Spanning across 133,330 square feet (sqft) of prime land, the Holland Drive site boasts a maximum gross floor area (GFA) of 626,665 sq ft, presenting an exciting opportunity for a 680-unit residential project. 

The expansive scope of development aligns with the increasing demand for modern and comfortable living spaces in this sought-after district.

Potential quantum price for Holland Drive site

Despite its attractiveness, industry experts suggest that the Holland Drive site may not be triggered for sale immediately, attributing this hesitation to a projected quantum price exceeding $1 billion. 

However, the market's dynamism opens avenues for developers to explore collaborative bids, forming consortia to navigate the competitive landscape.

Developer collaboration

In a bid to overcome the anticipated high bid price, analysts predict developers might consider collaboration strategies. 

Such alliances could mitigate the financial burden and pave the way for successful acquisitions, marking a trend in the current real estate scenario.

Cooling measures impact

An additional layer of complexity arises with existing cooling measures, including a 60 per cent Additional Buyer's Stamp Duty (ABSD), serving as a deterrent for foreign buyers. 

This factor, identified by industry experts, could potentially suppress demand, influencing the decision-making process for both local and international investors.

De Souza Avenue site

Moving towards De Souza Avenue, located off Jalan Jurong Kechil in the Upper Bukit Timah area, this site covers a land area of 207,154 sqft, offering a canvas for a 335-unit residential project with a maximum GFA of 331,453 sqft.

Potential quantum price for De Souza Avenue site

The De Souza Avenue site emerges as a more likely candidate for prompt sale, with an expected quantum of $500 million — half that of its Holland Drive counterpart. Limited new supply of residential development land in the area enhances the site's appeal and market potential.

Proximity to MRT station

Despite its strengths, the De Souza Avenue site faces a challenge as it is not in close proximity to any MRT station, a crucial factor for modern homebuyers. 

The nearest station, Beauty World MRT, is approximately one kilometre away.

Expected bidders and top bid

Should the De Souza Avenue site be triggered for sale, industry experts anticipate a moderate response, with one to three bidders expressing interest. 

The projected top bid is estimated to fall within the range of $1,200 and $1,300 per square foot per plot ratio (psf ppr), translating to a quantum price between $397.74 million and $430.88 million.

Comparison with previous development

Drawing comparisons with the last GLS residential site awarded on De Souza Avenue in September 2018, which resulted in the development of the 258-unit Verdale, provides valuable insights. This perspective sheds light on the potential trajectory of the upcoming project.

Overview of demand in District 21

District 21, encompassing the De Souza site, stands out as a popular choice among local homebuyers. 

The demand in this area appears to be less affected by foreign buyers, contributing to a stable and consistent market presence.

Remaining sites in 2H2023 programme

As the curtain falls on the discussion of Holland Drive and De Souza Avenue, it's essential to note that in the broader 2H2023 GLS programme, only three sites on the Confirmed List and one on the Reserve List remain available for sale. 

All four sites are strategically located in the Rest of Central Region (RCR), shaping the future landscape of Singapore's residential real estate.

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This article was first published in 99.co.