CDL submits the highest proposal for the Champions Way GLS site, $904 psf ppr

Tenders to tender for the two federal property for sale (GLS) sites located at Lentor Central and Champions Way ended on September 12.

Watten House Condo development on Shelford Road in District 11 of Singapore with a size of the freehold structure is 220,241 square feet.

The Champions Way site, which could yield 350 units, received bids from six different companies. City Developments Limited (CDL) offered the highest bid that was $294.889 million. This is an average land value of $904 per square foot per plot proportion (psf per plot ratio). CDL’s offer exceeds 8.3% higher than the second-highest price offered by TID (the Hong Leong Group and Mitsui Fudosan joint venture) at $272.26 million, or $835 per sq ft per plot.

Champions Way site is the first GLS tender in Woodlands. Champions Way site is the first GLS tender in Woodlands without executive condominiums since 2011. In 2011, the plot at Woodlands Avenue 2 and Rosewood Drive was purchased for $367 psf/plot proportion (psf per plot ratio) and was developed to become the 6,89 unit Parc Rosewood.

CDL states that the site will be replenishing its landbanks, ensuring an unshakeable pipeline for the launch. “It has been more than 10 years since a private residential development was announced in Woodlands and it is an exceptional opportunity to create an iconic and sustainable symbol as part of the plans for revitalization by the government,” remarks Sherman Kwek, CDL group CEO.

The site received more attention from developers as compared against those interested in the Lentor Central plot, which attracted only two bids. Wong Siew Ying, head of content and research of PropNex Realty, observes that the Champions Way plot was the one that received the most bids for non-executive condo (EC) site this year.

However, she highlights the huge gap between the highest bid and the lowest that was received Champions Way, with CDL’s bid being 45% higher than Innova Investors Limited’s $203.33 million ($623 PSF per). “In Particular, it is important to observe that some of the bids are on a low portion, at less than $750 psf (ppr), which could indicate developers are assessing potential risks associated with the location,” she observes.

Lam Chern Woon, head of research and consulting at Edmund Tie adds that the broad dispersion suggests “an change of the property market” and differing expectations being held by different market players.

He also notes that the site will profit from the expansion in Woodlands Regional Centre. Woodlands Regional Centre as well as the upgrading the demand of residents living in Woodlands and its proximity to Woodlands South MRT Station located on the Thomson East Coast Line.

Leonard Tay, head of research at Knight Frank Singapore, believes that the price of the new project on the site could begin at “just less than $2,000 per sq ft”. This could be a price increase that is more than fifty-three% above the average value for resales transactions within Parc Rosewood this year of $1,301 psf, Tay says. PropNex’s Wong has a similar opinion and estimates the expected average selling price to be above $1,900 per square foot. “This project will establish a new benchmark for launches that are new to the Woodlands planning zone,” she says.