Investing in real estate in Singapore requires careful attention to the rules and limitations surrounding property ownership. For non-residents, purchasing a condo may be a more straightforward process, but ownership of landed properties is subject to stricter regulations. Foreign buyers must also keep in mind the Additional Buyer’s Stamp Duty (ABSD) of 20% that applies to their first property purchase. However, despite these added costs, the steady and promising growth of Singapore’s real estate market makes it an attractive option for those interested in investing in a condo.
URA has recently put out tenders for two residential Government Land Sale (GLS) sites, namely Holland Link and Chuan Grove, on December 3. These 99-year leasehold parcels are part of the Confirmed List for the 2H2024 GLS Programme.
The Holland Link site, located along Holland Link off Bukit Timah Road in District 10, spans 185,141 square feet with a maximum gross floor area (GFA) of approximately 257,225 square feet. According to URA estimates, it has the potential to yield about 230 housing units.
This site is the first GLS plot to be launched in the upcoming Holland Plan precinct, one of URA’s three upcoming precincts including Bayshore and Kampong Bugis, noted Marcus Chu, CEO of ERA Singapore.
The new precinct is expected to accommodate an estimated 2,500 new homes, and Chu predicts that developers will be eager to secure this site to capitalize on the first-mover advantage by introducing the first 230 units in the pipeline.
He also pointed out that the site is within a 2km radius of various schools such as Methodist Girls’ School (Primary and Secondary), Henry Park Primary School, Pei Hwa Presbyterian Primary School and National Junior College. This could be a noteworthy factor for families with young children who may be seeking priority admission into these schools.
The Holland Link GLS site is also near the Brizay Park Good Class Bungalow area, which could potentially lead to future developments in the Holland Plan precinct to consist of low-density private residences, as predicted by Mark Yip, CEO Of Huttons Asia.
Yip expects the site to receive a minimal number of bids, ranging from one to two, with the top bid expected to be around $1,200 to $1,300 per square foot per plot ratio (psf ppr). Similarly, Chu also anticipates a tepid response to the site, citing a total of seven residential sites currently open for tender, which could lead to market saturation. He believes that the Holland Link site could garner up to three bids.
The Chuan Grove GLS site, on the other hand, is situated along Chuan Grove off Lorong Chuan in District 19. With a land size of 170,409 square feet and a maximum GFA of 511,232 square feet, it has the potential to yield about 555 new housing units.
The site is located within 400m of Lorong Chuan MRT Station on the Circle Line, which is one stop away from the Bishan MRT Station (interchange with the North-South Line) and the Serangoon MRT Station (interchange with the North-East Line).
Chu expects the future development on this site to draw the interest of HDB upgraders residing in the vicinity. According to him, within the next four years, an estimated 3,815 Build-to-Order (BTO) units sized four-room and larger are set to fulfill their Mandatory Occupation Period (MOP) in Toa Payoh.
He also noted that residents of HDB flats in older estates may be looking to upgrade their homes, given the increasing number of million-dollar flats in neighboring Serangoon, Bishan, and Toa Payoh. The median transaction prices for five-room flats in Bishan and Toa Payoh over the last 10 months were $792,000 and $828,000 respectively.
Chu also pointed out that developers could be encouraged by Chuan Park’s strong sales performance, with 76% of the development’s 916 units being sold at an average price of $2,579 psf during its launch weekend.
He expects bids for the Chuan Grove site to range from $571 million to $600 million, which translates to a land rate upwards of $1,200 psf ppr. Meanwhile, Yip predicts a total of three to five bids, with the top bid ranging from $1,150 to $1,250 psf ppr.
The tenders for the Chuan Grove and Holland Link sites will close at noon on July 8, 2025, and July 29, 2025, respectively.