Sim Lian Group has emerged victorious in the highly competitive bidding process for the private residential site at Jalan Tembusu, clinching the opportunity with a standout bid at the close of the tender on July 18. Sim Lian’s formidable bid of $828.8 million, translating to $1,069 per square foot per plot ratio (psf ppr), narrowly surpassed the $828 million ($1,068 psf ppr) joint bid from prominent developers, City Developments Ltd (CDL) and Frasers Property.
Situated just off Tanjong Katong Road in prime District 15, the 99-year leasehold Jalan Tembusu site spans 221,436 square feet, boasting a gross plot ratio of 3.5. With a maximum gross floor area (GFA) of 775,034 square feet, the site holds the potential for approximately 840 residential units.
This strategic locale sits opposite the forthcoming Tembusu Grand development, a joint venture between CDL and MCL Land, which secured the site in January 2022 for $768 million or $1,302 psf ppr, attracting eight bids during the tender period. Source: URA “The government land sales (GLS) tender reflects the judicious approach adopted by developers amidst economic uncertainties, escalating construction costs, and interest rate fluctuations,” explains Lee Sze Teck at Huttons Asia. Lee suggests that the substantial quantum and prevailing interest rates may have limited bidder participation.
Sim Lian’s decisive bid of $1,069 psf ppr for the Jalan Tembusu site signifies a 17.9% reduction compared to CDL and MCL Land’s $1,302 psf ppr for the Tembusu Grand site, and a 20.8% decrease compared to SingHaiyi Group’s $1,350 psf ppr for the Dunman Road private residential development site, secured in a land tender in June 2022. “The variance in bid prices could be attributed to recent policy adjustments concerning floor area harmonization, implemented from June 1, 2023, potentially resulting in reduced efficiencies,” notes Justin Quek of OrangeTee.
