Hong Leong GuocoLand JV Sole Bidder for Berlayar Drive Condo Site at Record S$1,515 PSF PPR

The Urban Redevelopment Authority (URA) announced the tender results for the 271,931 sq ft Berlayar Drive site on Tuesday (Aug 4). Located about 330 metres from Telok Blangah MRT station on the Circle Line, the 99-year leasehold site can yield approximately 415 private homes.

The Hong Leong-GuocoLand consortium’s bid of S$1,515 psf ppr is 14.3 per cent above the S$1,326 psf ppr land rate that Kingsford Group paid for the maiden GLS site in Berlayar estate, tendered in November last year. In that earlier tender, which drew three bids, the same Hong Leong-GuocoLand tie-up was the second-highest bidder at S$1,271 psf ppr. The first site, on Telok Blangah Road, can yield about 745 private homes.

While the sole bid fell below the two to eight bids analysts had predicted, the land rate of S$1,515 psf ppr is closer to the higher end of the S$1,100 to S$1,600 psf ppr range that analysts had forecast. Knight Frank Singapore research head Leonard Tay estimated the land rate could translate into a possible launch price starting from about S$2,900 psf and averaging around S$3,100 psf, with premium stacks potentially exceeding that level depending on views, orientation, and product design.

Analysts were surprised the tender attracted only one bid. Several factors may have contributed to the muted response. The site has a low plot ratio of 1.4 and a five-storey height limit, in contrast to the maiden Berlayar plot which is earmarked for a high-rise project with a 4.7 plot ratio. PropNex head of research and content Wong Siew Ying noted that the low plot ratio means the land yields relatively less saleable area, while construction costs may be higher due to the replication of lift cores, staircases, roofs, and common areas across multiple low-rise blocks.

Nicholas Mak, chief research officer of Mogul.sg, observed that the lower height could limit the prices the property can command, as units on lower floors typically fetch less than those higher up. Wong Shanting, head of research at Newmark, added that the low-rise nature means the project will not enjoy the panoramic waterfront views typically associated with taller developments, and highlighted that the lack of schools in the immediate vicinity may dampen appeal for younger families.

Huttons Group CEO Yip Yun Min suggested that most large developers may prefer to invest in established residential areas for now. Additionally, the recent extension of ABSD remission for large en bloc redevelopment projects and continued GLS supply give developers more options, making them more cautious and selective when bidding.

Despite the tepid bidding interest, the site has notable strengths. It is within walking distance of Telok Blangah MRT station on the Circle Line, one stop from VivoCity, and near the sea and greenery. CBRE head of research Tricia Song highlighted the site’s proximity to the coastline while being away from highway and road noise. Tay of Knight Frank noted that waterfront plots for residential development are rare in Singapore, and this site enjoys proximity to Berlayar Creek, Labrador Nature Reserve, and the southern coastline.

Berlayar estate, which will house about 7,000 new public housing and 3,000 private housing units, is part of the Greater Southern Waterfront stretching from Pasir Panjang to Marina East. A third GLS site in the estate, located at Berlayar Close, is expected to be launched for tender in December. It can yield 695 private homes and has a plot ratio of 2.1, sitting beside the maiden plot.

Justin Quek, deputy group CEO of Realion (OrangeTee and ETC Group), expects the private housing project on the Berlayar Drive site to see strong buying interest when it enters the market. Demand is expected to come from HDB upgraders in the nearby towns of Queenstown and Bukit Merah, where HDB resale prices for four-room and five-room flats have been robust. Yip of Huttons noted that next year, the RCR will see nearly 3,000 private units coming to market, and if all Southern Waterfront plots are sold, more than 1,800 additional units could follow in the next two years.