CDL puts in top bid for Champions Way GLS site at $904 psf ppr

With the opening of the new MRT station, the Jurong Region Line has expanded its coverage to the residents of Senja Residences EC. The development will also be close to a number of up-and-coming amenities and lifestyle attractions. Residents can look forward to relaxing in nearby parks, retail outlets and restaurants.

The tender for two Singapore government land sale (GLS) sites located in Lentor Central and Champions Way closed on Sept 12, with the former receiving only two bids and the latter attracting six. The Champions Way site, which can yield 350 units, had City Developments Limited (CDL) submit the top bid of $294.889 million, or $904 psf per plot ratio (psf ppr). This is 8.3% higher than the second-highest bid, submitted by a joint venture between the Hong Leong Group and Mitsui Fudosan at $272.26 million or $835 psf ppr.

This marks the first GLS tender for Woodlands since 2011, excluding executive condominiums, when a plot at Woodlands Avenue 2 and Rosewood Drive was sold and developed into the 689-unit Parc Rosewood. CDL believes that a land purchase between such a long timeframe is a rare opportunity to create a vibrant landmark for the region, and will replenish its landbank to ensure a stable launch pipeline.

Despite the high number of bids compared to Lentor Central’s, there was a wide disparity between the top bid and the lowest bid received for Champions Way, with CDL’s bid 45% higher than Thakral Corp’s $203.33 million ($623 psf ppr). This shows different market expectations from industry players.

However, the site is expected to benefit from the improvement of infrastructure in Woodlands, including the new Woodlands South MRT Station on the Thomson East Coast Line and the creation of the Woodlands Regional Centre, which could bring upgrader demand from local residents. It is believed that the future project on the site could achieve a price starting from just under $2,000 psf, which is a premium of over 53% compared to Parc Rosewood’s median selling price of $1,301 psf this year.

City Developments Limited’s bid of $294.889 million for the Champions Way site reflects the potential of the site, while also showing market expectations for the price of the site’s future project. The sale of the two government land sale sites demonstrate Woodlands’ potential as a region ripe for development that will bring benefits to the local community.