TWO freehold development land parcels at Thiam Siew Avenue, a residential street of landed homes adjacent to Tanjong Katong Road, have been sold for S$815 million to a joint venture between Hoi Hup Realty and Sunway Developments.
The deal is the largest residential land sale since the July 2018 round of property cooling measures, when the government raised Additional Buyer’s Stamp Duty (ABSD) rates and tightened Loan-to-Value limits.
Savills showed that the price of the sites, with a land area totalling 2.45 hectares and a plot ratio of 2.8, translates to about S$1,488 per square foot per plot ratio (psf ppr), after an estimated development charge of about S$284 million. The land rate works out to about S$1,440 psf ppr if a 7 per cent bonus on balconies is further taken into account, it added.
Head of research and consultancy at ERA Nicholas Mak noted that the deal represents the highest price paid for in a single transaction for residential development land since the sale of a Government Land Sale (GLS) site at Silat Avenue for S$1.035 billion, or S$1,138 psf ppr, in May 2018.
Announcing the sale in a news release on Friday (Nov 19), broker Savills Singapore said the transaction was sealed following the close of its public tender exercise on Thursday.