Residential sites at Holland Drive and De Souza Avenue for sale on Reserve List

with total allowable GFA of 806,000 sq ft

URA has released two parts of a residential site for sale in the 2H2023 Government Land Sales (GLS) programme. The Reserve List offers the two sites located at Holland Drive and De Souza Avenue, both of which are on 99-year leasehold and can yield 1,035 residential units combined.

The more attractive Holland Drive land sits in prime District 10 and is close to amenities at the One Holland Village complex as well as the Holland Village MRT station. The site is 133,330 sq ft in area and 626,665 sq ft in maximum GFA, offering the potential to develop a 680-unit residential project.

Wong Siew Ying, PropNex head of research and content, states that the site is likely to require a bidding price of more than $1 billion. This is likely to be a prohibitive sum for many local developers, and a consortium of bidders may be necessary to meet the price.

The De Souza Avenue site is located near the Upper Bukit Timah area, with a land area of 207,154 sq ft and a GFA of 331,453 sq ft. This could be developed into a 335-unit residential project.

Huttons Data Analytics’ Lee Sze Teck predicts the site may be triggered for sale as the expected quantum may be around $500 million. Also, the De Souza Avenue site will likely attract local homebuyers as there is limited new supply of residential land in the area and there are cooling measures in place, such as the additional buyer’s stamp duty (ABSD) of 60%.

The Lumina Grand EC CDL is expected to offer a wide range of facilities, such as a 50-metre pool, a gymnasium, a clubhouse, a BBQ plaza, children’s play areas, and a sky terrace. In addition, the residential development will feature 594 premium residential units with 2 to 5 bedroom types, offering homeowners the opportunity to choose the ideal home suited to their lifestyle.

The last GLS residential site awarded on De Souza Avenue was in September 2018 and was developed into the 258-unit Verdale project. The site was launched in September 2020 and was sold out at an overall average price of $1,782 psf in May 2021.

The De Souza Avenue site is slightly lagging in terms of amenities compared to the Holland Drive site as it is not located near an MRT station. The nearest MRT station is Beauty World MRT, approximately 1km away. Bidding on the site may range from $1,200 to $1,300 psf ppr, which is estimated to be around a quantum price of between $397.74 million and $430.88 million.

The last new project launch in the district was The Reserve Residences, which is an integrated development with a direct connection to the Beauty World MRT station, bus interchange and a mall. It sold 71% of its units at launch at an average price of $2,225 psf and is 91% sold to date.

The two sites on the Reserve List of the 2H2023 GLS programme are the last of four sites available in the Rest of Central Region. The total allowable GFA of all four sites is 806,000 sq ft.

With the potential of attracting local homebuyers, the two sites at Holland Drive and De Souza Avenue are prime opportunities in an area with limited new supply. While the Holland Drive project may be financially out of reach of many bidders, with the De Souza Avenue project likely to draw bids between $1,200 and $1,300 psf ppr, this could be an attractive option for developers looking to expand their portfolios.