CDL JV Bids $422M for Prime Singapore Housing Site, Exceeding Forecasts

A joint venture including City Developments (CDL), controlled by billionaire Kwek Leng Beng, has lodged a top bid of S$542.4 million (US$422.2 million) for a residential site in Singapore’s prime District 9, signaling robust developer confidence in the luxury property segment.

The Urban Redevelopment Authority (URA) announced on Thursday that the offer for the 59,347-square-foot (5,513.5-square-meter) private housing plot on Peck Hay Road translates to S$1,865.15 per square foot per plot ratio (psf ppr), or US$15,630 per square meter. This figure was 8.4% higher than the second-place bid of S$500.19 million, or S$1,720 psf ppr, from a partnership between Sunway MCL Land and CSC Land Group. The bid also surpassed the nearly S$1,820 psf ppr paid for a nearby Bukit Timah Road site, for which the tender closed last November.

The result exceeded analyst projections, which had forecast a top bid between S$1,600 and S$1,800 psf ppr when the tender was launched in April.

The 99-year leasehold site has a maximum gross floor area of 290,811 sq ft and is located within walking distance of Newton MRT Station, providing access to the North South and Downtown lines. It sits within the Newton area, which the URA aims to develop into a "vibrant, mixed-use urban village" under its 2025 Master Plan.

Should the site be awarded, the 80:20 partnership between CDL and Hong Realty, a subsidiary of Hong Leong Group, plans to develop a 39-story residential project with around 380 units, exceeding the URA's estimate of 315. Sherman Kwek, CDL's group CEO and son of Kwek Leng Beng, said the project's proximity to the Orchard Road shopping belt, strong MRT links, and convenient access to amenities make it an appealing option for discerning homebuyers. "We look forward to shaping the precinct’s next phase of transformation with a distinctive residential landmark," he said.

Marcus Chu, CEO of real estate agency ERA Singapore, noted that the top bid is the second-highest ever for a residential-only government land sale, trailing only the S$2,377 psf ppr paid for a Cuscaden Road site in May 2018. Based on the land cost, ERA estimates the future project will command an average selling price of at least S$3,500 psf. Leonard Tay, head of research at property consultancy Knight Frank Singapore, expects launch prices to average S$3,700-S$3,900 psf. He added that pricing will depend on "how the developer designs and shapes the product and schedules the launch vis-a-vis prevailing market conditions in about a year’s time."

Kwek Leng Beng is the executive chairman of both CDL and Hong Leong Group. He and his family were ranked second on Forbes’ list of Singapore’s richest people last September, with an estimated net worth of US$14.3 billion.