Hong Leong, GuocoLand JV Sets Singapore Land Rate Record
A joint venture between Hong Leong Holdings and GuocoLand submitted Singapore's sole bid for a Berlayar Drive condo site. Their S$576.78 million offer establishes a new city-fringe land rate benchmark.
New Benchmark Established
Hong Leong Holdings' unit Intrepid Investments and GuocoLand formed a joint venture (JV). This JV was the only bidder for a 99-year leasehold residential plot. The site is located on Berlayar Drive, part of the former Keppel Club grounds in Singapore. Their S$576.78 million offer translates to S$1,515 per square foot per plot ratio (psf ppr). This price establishes a new record for a pure private residential Government Land Sale (GLS) site within Singapore's city fringe, also known as the Rest of Central Region (RCR).
Context and Comparisons
The Berlayar Drive land rate of S$1,515 psf ppr surpasses previous benchmarks. It exceeds the S$1,455 psf ppr achieved for a Tanjong Rhu site in February this year. The offer also stands 14.3 per cent above the S$1,326 psf ppr rate. That earlier rate was set by Kingsford Group for the maiden Berlayar estate GLS site in November last year. The 271,931 square foot Berlayar Drive site can accommodate approximately 415 private housing units. This property is the second plot released within the new Berlayar estate.
Developer Caution and Site Constraints
Despite the record price, developers showed caution, with only one bid received. Analysts had anticipated two to eight bids. The site has specific constraints. Its low 1.4 plot ratio (ratio of maximum gross floor area to site area) limits building height to five storeys. Nicholas Mak, chief research officer at Mogul.sg, noted the project's lower height could limit its pricing power. Wong Shanting, Newmark's head of research for Singapore, added that the low-rise nature prevents panoramic waterfront views. The immediate vicinity also lacks schools and large retail amenities, a potential drawback for families, Wong Shanting observed.
Market Outlook and Investor Implications
The site offers proximity to Telok Blangah MRT station, Berlayar Creek, and Labrador Nature Reserve. Tricia Song, CBRE's head of research for Singapore and Southeast Asia, points to its quiet location away from highway noise. Leonard Tay, Knight Frank Singapore's research head, projects a possible launch price from S$2,900 psf, averaging S$3,100 psf. Justin Quek, deputy group CEO of Realion (OrangeTee & ETC) Group, expects strong buyer interest. Demand will likely come from Housing & Development Board (HDB) upgraders in nearby Queenstown and Bukit Merah. These towns demonstrate robust HDB resale prices for four-room and five-room flats. Developers may also conserve capital for a third Berlayar estate GLS site, launching in December. This site can yield 695 homes.
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