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Holland Drive GLS Plot likely to attract 2-5 bids: experts

Top bids could come between $846m to $1b.

Real estate experts expect two to five bids for the Holland Drive Government Land Sales (GLS) plot.

In terms of bidding amount, OrangeTee forecasts bid prices ranging from $1,400 to $1,500 per square foot, while Huttons expects top bids between $846m and $909m, or $1,350 to $1,450 per square foot per plot ratio. 

PropNex had a higher forecast of the top bid ranging from $909m to $1b.

The Holland Drive Government Land Sales (GLS) plot has the potential to yield approximately 680 units.

What makes the site attractive, according to Orange Tee CEO Justin Quek, is its proximity to schools, institutions like the National University of Singapore, and business hubs like one-north and the Science Park.

However, the expert acknowledged challenges that may affect bidding for the property, such as potential economic uncertainty and increased stamp duty rates for foreign buyers.

"This is a major development that can yield a larger number of homes and will require significant investment. Higher-for-longer interest rates, macroeconomic uncertainty, and the ABSD [Additional Buyer's Stamp Duty] increase for foreigner buyers and investors may be additional areas of concern," he said.

"Some developers may choose to form consortiums to mitigate risks and manage costs," Quek added.

As for Huttons, it sees the plot as a significant opportunity, highlighting its potential for a high-rise development offering unobstructed views of good-class bungalow (GCB) areas. 

"It may be developed into a project exceeding 30 storeys, thus offering residents unblocked views over the GCB areas. However,  the large site with more than 600,000 square feet of gross floor area will translate to a large quantum and will likely attract consortiums," the expert said.

Likewise, Wong Siew Ying, head of Research and Content at PropNex Realty, anticipates developer interest but noted caution amongst developers due to recent GLS tender trends, including increased stamp duty rates.

"All in all, the site has many positive attributes, but the land price could be a deterrent," said Ying.

"With the maximum gross floor area at more than 626,000 sq ft, the bid price could potentially reach $1b, which may suppress developers’ interest in the plot," the expert explained. "To this end, we expect the number of bids to be limited, and developers will likely team up, forming consortiums to submit bids, to mitigate development risk."

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