Two freehold development sites at Thiam Siew Avenue (District 15) have been sold for $815 million via public tender, which closed on Nov 18, 2021 – making the 263,794 sq ft area the largest land sale recorded in 2021 so far.
With Savills Singapore as the exclusive marketing agent, a joint venture between Hoi Hup Realty and Sunway Developments secured the plum sites. The 22 plots of freehold residential development sites are zoned as “residential”, with a plot ratio of 2.8 based on the URA Masterplan 2019.
Situated between Tanjong Katong Road and Haig Road, Thiam Siew Avenue is flanked on both sides by single-storey, pre-war semi-detached houses and bungalows.
They belonged to hotelier and prior chairman of Ban Leong & Co, Wee Thiam Siew, who passed away in 1972, before being entrusted to members of his family, under Thiam Siew Avenue Investments and Wee Thiam Siew & Co. Wee was also the former owner of Lion City Hotel and the adjoining Hollywood Theatre at Tanjong Katong Road, before they were sold to UOL Group in 2011 for $313 million.
For the Thiam Siew Avenue sites, they are within walking distance to 2 MRT stations (EW8/CC9 Paya Lebar Interchange MRT station and CC8 Dakota MRT station), so their proximity to the Paya Lebar Central precinct could mean greater buyer demand when the sites are fully developed. They are also within 1km of Kong Hwa, Haig Girls’ and Tanjong Katong Primary Schools.
At a sale price of $815 million, with an estimated development charge of $284 million, the land price works out to be about $1,488 per plot ratio (ppr). If we include the 7 per cent bonus balconies (development charge estimated at $39.3 million), the eventual land price would be about $1,440 ppr.
“We are very pleased to have secured an excellent result for the vendors. Thiam Siew Avenue is a popular and mature neighbourhood with strong locational attributes. We congratulate Hoi Hup and Sunway on securing this coveted site. At $815 million, the deal also marks the largest residential development site sold since July 2018,” said Galven Tan, Deputy Managing Director, Investment Sales and Capital Markets, Savills Singapore.
“We are very pleased to secure these two rare Freehold sites in the East. In today’s competitive real estate market, we are very confident of the demand for quality freehold developments, especially for these big freehold plots in District 15. Our plan is to develop two luxury high rise condominiums with more than 800 units,” said Wong Swee Chun, Chairman and Managing Director of Hoi Hup Realty.
This article was first published in 99.co.