Thiam Siew Ave site sold to Hoi Hup for S$815m

Hoi Hup Realty and Sunway Developments have bought two parcels of land on Thiam Siew Residences, which is a residential street next to Tanjong Katong Road. They bought the land for S$815 million.

If you want to build a house, you’ll have to pay more money for it. The deal is the largest residential development site sale since the government raised Additional Buyer’s Stamp Duty (ABSD) rates and tightened Loan-to-Value limits in July 2018.

Land prices for the 2.45 acre site, which has a plot ratio of 2.8, come to about S$1,488 per square foot per plot ratio (psf ppr), after a development charge of about S$284 million. Adding in a 7 percent bonus for balconies, the land rate works out to about S$1,440 psf ppr, the report said.

Nicholas Mak, the head of research and consulting at ERA, said that the deal is the highest price for residential development land since the sale of a GLS site at Silat Avenue for S$1.035 billion, or S$1,138 per square foot, in May 2018.

An announcement came out on Friday, Nov. 19, from broker Savills Singapore. They said the deal was done after they closed their public tender exercise on Thursday.

Hoi Hup Realty Came in Top Bid for the Site at Thiam Siew Avenue

A company called Hoi Hup Realty Private Limited said in a press release that it was interested in the two freehold sites because they are rare in the east of Singapore and there aren’t many like them.

Today, there is a lot of competition in the real estate market, and we are very sure that there will be a lot of demand for high-quality freehold developments, especially for these big freehold plots in District 15.

Configuration of Thiam Siew Residences

He also plans to build two high-rise condos with more than 800 units there.

It would cost about S$2,400 to S$2,630 per square foot to build a condo on this site, taking into account construction and other costs.

Because there isn’t enough people to build things, construction costs have gone up since the pandemic started in 2020. This has put a strain on profit margins.

Comparable Nearby Launches

Coastline Residences, Amber Park, and Nyon are currently existing freehold private residential projects being sold in district 15. There were a lot of sales at Amber Park, the Coastline Residences, and Nyon in 2021. The median price for these units was S$2,448 psf.

It also said that the 22 development sites, which are already home to five bungalows and ten pairs of semi-detached houses, will benefit from their close proximity to the Paya Lebar Central area.

Precinct Paya Lebar Central was one of nine precincts chosen by the Urban Redevelopment Authority to be part of a pilot Business Improvement District (BID) program to help make the city more lively.

Further, Mak said that the highest price for development land this year so far has been paid for the Marina View white site near the Singapore Conference Hall, which was sold to GLS. S$1.508 billion, or S$1,379 a square foot. It was sold on September 29 for that amount.

Developers are still being picky about which properties they want to build, so the en bloc market hasn’t really started to get going yet.

“Also, some developers are careful when they buy land, because if the market gets too hot, the government could step in and put more market controls in place,” he said.

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