In the most recent government land sales (GLS) tender, the prime site at Orchard Boulevard concluded on February 1st with four bids. The joint venture between UOL Group and Singapore Land Group (SingLand) emerged as the victor with the highest bid of $428.28 million, equating to $1,616 per square foot per plot ratio (psf ppr). The top bid of $1,616 psf ppr represents a marginal 2.46% premium over the next highest bid of $1,578 psf ppr that was submitted by Allgreen Properties. Situated on a 75,686 square foot, 99-year leasehold site, the Orchard Boulevard GLS site is designated for residential development with commercial usage permitted on the ground floor. It boasts a maximum gross floor area of 264,911 square feet, allowing for the potential creation of a residential project comprising 280 units.

Liam Wee Sin, the group chief executive of UOL Group, underscores the appeal of the site’s location, emphasizing its direct MRT connection to the Orchard Boulevard station. UOL and SingLand envision developing the site into a towering luxury condominium spanning 36 storeys, aiming to capitalize on the sweeping panoramic views it offers.

Lee Sze Teck, senior director of data analytics at Huttons Asia, remarks on the significance of this bid, noting it as the strongest for land in the Core Central Region (CCR) and Orchard Road area in the past five years. He attributes developers’ growing confidence in the CCR to the outstanding results and prices achieved at projects like Watten House. Watten House, a 180-unit freehold development located in prime District 11, has witnessed strong sales since its preview in November 2023. With 67% of its units sold at an average price of $3,241 psf, the project sets a benchmark for high-end residential offerings.

The strategic positioning of the Orchard Boulevard GLS site is further emphasized by its proximity to the Orchard Boulevard MRT Station and various upscale amenities including Tanglin Mall, luxury hotels, and prime shopping destinations along Orchard Road. In comparison, the bid of $1,617 psf ppr by UOL and Singapore Land for the Orchard Boulevard GLS site represents a notable 32% decrease from the $2,377 psf ppr paid for the adjacent Cuscaden Reserve site six years ago. Leonard Tay, head of research at Knight Frank Singapore, attributes this difference to increased development costs and risks faced by developers, along with the heightened additional buyer’s stamp duty for foreign investors.

It is noteworthy that UOL’s history in the vicinity includes the development of Orchard Bel-Air, a 71-unit, 99-year leasehold property adjacent to the GLS site and MRT station. Despite a relaunch for collective sale in January 2023, Orchard Bel-Air did not secure a successful buyer at its guide price of $587.5 million ($2,620 psf ppr).