Lakeside Drive site draws six bids despite market caution: analysts

This is the highest land rate for an Outside Central Region site since November 2023.

The Lakeside Drive government land sales (GLS) site has drawn strong bidding interest despite some market uncertainties, with City Developments Limited (CDL) submitting the highest bid at $1,132 per square foot per plot ratio (psf ppr).

According to Huttons Asia, this is the highest land rate for an Outside Central Region (OCR) site since November 2023.

“The level of participation and bid price for a site located in the OCR is the highest since Clementi Ave 1 in November 2023,” said Mark Yip, CEO of Huttons Asia.

PropNex noted that the tender saw six bids, with the second-highest offer of $1,025 psf ppr from a joint venture between Frasers Property and MJR Investment, an affiliate of Mitsubishi Estate Group.

The wide spread of 25% between the top and bottom bids “suggests differing assessment of the risks and opportunities for this plot among developers,” said Wong Siew Ying, Head of Research and Content at PropNex.

The site's strong appeal is driven by several key attributes. According to Huttons, the plot offers "doorstep access to Lakeside MRT station" and is within a 250m walk to Rulang Primary School.

Its commercial component on the first floor will also "complement the limited retail offerings at Lakeside MRT station and the HDB neighbourhood across the road," providing added convenience to residents.

PropNex also pointed to long-term prospects tied to the Jurong Lake District (JLD), stating that the site "may benefit from the development of the Jurong Lake District (JLD) nearby" and offers proximity to "Jurong Lake Gardens, which may present scenic views to future residents of the project".

However, some caution remains. “There could potentially be some uncertainty as to the depth of private housing demand, given the relatively slower sales at a couple of recent launches in Jurong,” said PropNex’s Wong Siew Ying. She added that "the US tariffs situation continues to evolve and underlying volatility remains".

CBRE’s Head of Research for Singapore and Southeast Asia, Tricia Song, echoed the longer-term optimism while noting near-term caution. “The outcome reflects developers’ confidence in the longer-term potential of Jurong Lake District as Singapore’s second CBD,” she said, but added that "sales momentum is expected to be moderate at launch.”

At the current land rate, both PropNex and CBRE estimate that the eventual launch price for the project could exceed $2,400 psf.