Kallang riverfront site hotly contested as developer bids hit record high

Tender Results for Kallang Close Site Released: Top Bid Hits $1,415 psf ppr

The Government Land Sales (GLS) site at Kallang Close, which closed its tender on 7 April, attracted bids from four developers.

The tender was ultimately awarded to a consortium comprising Frasers Property and Mitsubishi Estate with a top bid of $610.8 million. This works out to a land rate of $1,415 per square foot per plot ratio (psf ppr), making it the highest offer in this tender exercise.

Keen Competition with Narrow Margin

Notably, the tender saw intense competition among developers.

The second-highest bid came from City Developments Limited (CDL) at $1,405 psf ppr, just 0.7% lower than the top bid.

The other two bids were submitted by:

Hong Leong Holdings + TID consortium: $1,301 psf ppr

Wing Tai Holdings + Metro Holdings: $1,242 psf ppr

The gap between the lowest and highest bids was only around 9.8%, reflecting a relatively consistent valuation of the site among developers.

Project Overview: Estimated Yield of Around 470 Units

The 99-year leasehold site spans approximately 123,320 sq ft and is estimated to yield about 470 residential units.

Situated near Kallang Avenue and directly fronting the Kallang River, the development will enjoy scenic waterfront views.

Locational Advantages: A Rare City-Fringe Waterfront Plot

The site is situated within the upcoming Kampong Bugis precinct and is the first private residential parcel launched in this area.

Market observers noted that such "first-mover plots" typically offer a first-mover advantage, making them especially appealing to developers.

In addition, the site boasts the following locational highlights:

Within walking distance to Kallang MRT station (East-West Line)

Close to Bendemeer MRT station (Downtown Line)

A short drive to the Central Business District (CBD)

Furthermore, a waterfront location right along the Kallang River is a rare attribute in land-scarce Singapore.

Regional Growth Potential: Kampong Bugis Transformation

The site forms part of the broader Kallang Alive master plan.

Looking ahead, the Kampong Bugis precinct is projected to yield around 4,000 residential units and will be shaped into an integrated waterfront community blending residential, commercial, lifestyle, entertainment, and sports facilities, complementing the Singapore Sports Hub.

This master plan will further elevate the precinct's residential appeal and lifestyle value.

Market Sentiments: Developers Remain Keen on Land Replenishment

Market analysts pointed out that the tender outcome underscores developers' strong appetite for prime city-fringe sites.

In the current market environment, developers remain eager to secure sites in scarce locations, precincts with future growth potential, and parcels that help replenish their development pipelines.

Despite prevailing market uncertainties, well-located prime sites continue to be fiercely contested.

The strong pricing and intense bidding for the Kallang Close site send a clear signal: developers are still willing to bid competitively for prime plots with limited supply.

As the transformation of Kampong Bugis and the Kallang precinct takes shape, the future residential launch on this site is poised to be a major highlight to watch.