Holland Drive GLS Source URA

Prime GLS site in Holland Drive released for sale

A coveted 99-year leasehold site in Holland Drive, capable of accommodating approximately 680 units, is now open for sale as part of the confirmed list for the first-half 2024 Government Land Sales (GLS) program.

This marks the first GLS site launch in the Holland Village vicinity since the award of a nearby Holland Road site in May 2018, which eventually became the mixed-development One Holland Village.

The Holland Road site attracted 15 bids in 2018 and was successfully awarded at $1.21 billion or a land rate of $1,888 per sq ft per plot ratio (psf ppr). The subsequent One Holland Village Residences, launched in November 2019, witnessed the sale of all 296 units by August 2023, achieving an average price of $2,807 psf.

Situated in close proximity to Holland Village MRT station and commercial amenities, the Holland Drive site, bounded by North Buona Vista Road, Holland Drive, and Holland Road, boasts a maximum gross floor area exceeding 626,000 sq ft. Analysts suggest it could command a potential land price quantum of up to $1 billion.

However, the high land price may dampen developers’ interest, particularly amid elevated interest rates, macroeconomic uncertainties, and a slowdown in new home sales within the prime district following recent property cooling measures.

Ms. Wong Siew Ying, head of research and content at real estate firm PropNex, noted, “The site has many positive attributes, but the land price could be a deterrent.”

Developers’ caution regarding large investor-focused sites is evident in recent GLS tender exercises, where subdued participation was observed. A Lorong 1 Toa Payoh site with 775 buildable units, awarded in November 2023, received only three bids due to a larger total gross floor area and higher price quantum.

Analysts anticipate the Holland Drive site to attract between two and five bids, with expected top bids ranging from $846 million to $1 billion, equating to a land rate of $1,350 to $1,600 psf ppr. Developers may form consortiums to manage development risks.

As the last plot for private residential development in the Holland Village enclave, the new project could surpass 30 storeys, according to Mr. Lee Sze Teck, Huttons Asia’s senior director of data analytics. Existing projects in the vicinity, such as Van Holland, are sold out, and the future Holland Drive development may see healthy demand due to a lack of new supply.

The Holland Drive site is part of the confirmed list for the first-half 2024 GLS program, with a tender deadline set for noon on May 14.

The Straits Times

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