Sunway, CSC Land lead race for prime Singapore site with S$750.6M offer

A joint venture that includes Sunway MCL, a company controlled by Malaysian billionaire Jeffrey Cheah, has submitted the leading bid of S$750.6 million (US$581 million) for a coveted residential site in Singapore. The offer from Sunway MCL and its partner, CSC Land Group, is for the River Valley Green (Parcel C) plot, the final government land parcel to be released for sale in the area.

The partners' bid translates to a land rate of S$1,730 per square foot (US$14,424 per square meter) per plot ratio. Their offer narrowly surpassed the second-highest bid of S$720.7 million from a subsidiary of China Overseas Land & Investment. The third-place offer of S$715.9 million came from a consortium comprising Hong Leong Holdings, GuocoLand, and TID Residential. The tight competition was noted by Mark Yip, CEO of Huttons Asia, who observed that "the price gap between the highest and lowest bid is just 6.4%, which points to a consensus on the value of the site."

The 99-year leasehold site spans 123,958 square feet (11,516 square meters) and has a permissible gross floor area of 433,854 square feet (40,306 square meters). Located in Singapore’s prime District 9, the plot is strategically situated next to the Great World MRT Station and the Great World shopping mall. It is also in close proximity to several schools and popular lifestyle destinations such as Robertson Quay, Clarke Quay, and the Orchard Road shopping belt.

According to property consultancy CBRE, residential projects in the vicinity have seen robust demand. Wing Tai Holdings' 524-unit River Green development is 94% sold, while Zyon Grand, a 706-unit project by City Developments, led by Singaporean billionaire Kwek Leng Beng, and Japanese developer Mitsui Fudosan, has achieved a 90% sales rate.

Should the joint venture be awarded the site, Sunway MCL and CSC Land Group intend to develop a high-rise residential project featuring more than 500 units housed within two 36-story towers. Based on the land bid, real estate agency PropNex projects that the new development could achieve an average selling price exceeding S$3,300 per square foot. CBRE forecasts a slightly higher launch price, estimating an average of S$3,400 to S$3,500 per square foot. Looking further ahead, Huttons Asia’s Yip told The Business Times, "With the current upward trajectory in Core Central Region (CCR) land prices, future selling prices of CCR homes in 2027 are likely to be calibrated upwards and test the S$3,600 psf level."

Sunway MCL was previously known as MCL Land before being acquired last year by Malaysian conglomerate Sunway Group from Hongkong Land in a S$739 million deal. The group's founder and chairman, Jeffrey Cheah, has an estimated net worth of US$5.1 billion, ranking him among Malaysia's wealthiest individuals, according to Forbes. Sunway Group operates across diverse sectors including construction, real estate, healthcare, education, and infrastructure. The company has been actively increasing its investments in Singapore in recent years. Earlier this month, Sunway MCL placed the second-highest bid for a 99-year leasehold residential site on Peck Hay Road in the Newton area, which was ultimately awarded to a partnership involving City Developments.