Sim Lian Group has emerged as the highest bidder for the private residential site at Jalan Tembusu. They submitted a bid of $828.8 million, or $1,069 per square foot per plot ratio (psf ppr). This bid was just slightly higher than a joint venture between City Developments Ltd (CDL) and Frasers Property, who submitted a bid of $828 million, or $1,068 psf ppr. The site, located in prime District 15, has a land area of 221,436 sq ft and a gross plot ratio of 3.5. It has the potential to be developed into a residential project of approximately 840 units, with a maximum gross floor area (GFA) of 775,034 sq ft.

The Jalan Tembusu site is situated opposite the upcoming Tembusu Grand development, which was won by a joint venture between CDL and MCL Land in January 2022. The tender for the Jalan Tembusu site attracted two bids, while the tender for the Tembusu Grand site in January 2022 received eight bids.

According to Lee Sze Teck, senior director of research at Huttons Asia, the cautious mood among developers in light of economic uncertainties, high construction costs, and interest rates may have limited the number of bidders for the Jalan Tembusu site. The top bid by Sim Lian is 17.9% lower than the price paid for the Tembusu Grand site and 20.8% lower than the price won by SingHaiyi Group for the Dunman Road site in June 2022.

Justin Quek, deputy CEO of OrangeTee, suggests that the difference in bid prices could be due to changes in policies regarding floor area harmonization, which came into effect from June 1, 2023. This policy change may have resulted in smaller efficiencies, leading to lower bid prices.

Tembusu Grand, which was launched in April 2023, has seen 57.2% of its units sold at an average price of $2,464 psf. Grand Dunman, launched in July 2023, has sold 54.6% of its units at an average price of about $2,500 psf. Leonard Tay, head of research for Knight Frank Singapore,

Site Area: 2.05 ha
Proposed GPR: 3.5
Estimated no Of Units: 840
Launch Date: March 2023

Top Bid: Sim Lian Group
Bid Price: $828.8 Million
PSF PPR: $1,068

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