The government land sales (GLS) site at De Souza Avenue closed on July 18 with two bids, marking a significant event in Singapore’s real estate landscape. The highest bid, a remarkable $278.9 million or $841 per square foot per plot ratio (psf ppr), was submitted by SL Capital (8) Pte Ltd, better known as Sustained Land Pte Ltd.
Nestled off Jalan Jurong Kechil in District 21, this 207,156 square-foot site boasts a maximum gross floor area (GFA) of 331,453 square feet, potentially accommodating up to 355 residential units. The Urban Redevelopment Authority (URA) has also mandated the inclusion of an early childhood development centre covering at least 5,382 square feet as part of the tender requirements.
The winning bid of $841 psf ppr stands a notable 22.3% above the second-highest bid of $687 psf ppr, submitted by Capital Development, a subsidiary of Eng Seng Lee Construction. This competitive bidding underscores the high interest and confidence in the site’s potential.
Situated within the vibrant Beauty World neighbourhood, the new launch condo is poised to benefit from URA’s rejuvenation plans for the area, outlined in the 2019 Master Plan. Upcoming enhancements include a new integrated transport hub linking Beauty World MRT Station with a bus interchange and a three-story retail mall, which are expected to boost the area’s appeal significantly.
Mark Yip, CEO of Huttons Asia, highlights the site’s proximity to two nature reserves: Bukit Batok Nature Park and Bukit Timah Nature Reserve. This adds a green allure to the development, appealing to nature enthusiasts and those seeking a serene living environment.
Mohan Sandrasegeran, head of research and data analytics at SRI, notes a noticeable uptick in private resale transactions in the Bukit Timah area. In 2Q2024, non-landed private resale transactions surged to 145 units, marking an over 10% increase from the 131 units recorded in 1Q2024. Sandrasegeran attributes this steady demand to a pool of potential upgraders showing interest in the area.
Just 200 meters from the De Souza Avenue GLS site, another GLS site along Jalan Jurong Kechil has been transformed into the 258-unit Verdale by COLI Singapore and CSC Land Group, a project that was fully sold and completed last year. The joint venture partners secured the site with a bid of $215 million or $1,002 psf ppr.
In November 2022, Bukit Sembawang Estates was awarded another GLS site along Bukit Timah Link for $200 million ($1,343 psf ppr). This 99-year leasehold site, located within a 2 km radius of the De Souza Avenue GLS site, is set to become a 155-unit project featuring one- to four-bedroom flats.
Leonard Tay, head of research at Knight Frank Singapore, and Wong Siew Ying, head of research and content at PropNex Realty, estimate a future launch price for the De Souza Avenue site to be around $2,000 psf. However, SRI’s Sandrasegeran projects even higher prices, ranging from $2,500 to $2,600 psf, reflecting strong market confidence.
The De Souza Avenue GLS site represents a golden opportunity in Singapore’s dynamic real estate market. With its prime location, strategic importance, and robust interest from developers, this site is set to become a highly coveted residential enclave, driving both demand and development in the Beauty World area.