The Urban Redevelopment Authority has today (31 Oct) launched the tender for a residential site in Irwell Bank Road. This site - which we believe is the most appealing one on the GLS slate for the second half of 2019 - will attract developers who are keen to add a rare, sizable residential site in the prime District 9 to their development pipeline. However, given the relatively large quantum required, we expect the tender for Irwell Bank site to be cautious, attracting 4 to 6 bids, in line with the average 5 bids for residential sites costing over SGD300 million since the cooling measures were implemented in July 2018.
The top bid could come in at SGD650-680 million (or SGD 1,700-1,770 per square foot per plot ratio), relatively similar to the land rate of SGD1,732.55 psf ppr for the Jiak Kim Street site (Riviere), which was awarded to Frasers Centrepoint in December 2017.
Apart from its prime location, the site - which can yield 445 residential units - has a regular shape and is near the Orchard Road shopping belt. In addition, it is also near the upcoming Great World City MRT station and Great World City Mall.
In assessing the site, we believe developers will likely take a cue from the performance of 455-unit Riviere, about 600 metres away, which has sold 45 units at a median price of SGD2,850 psf since it was launched in May 2019. Martin Modern, another GLS site, has sold 353 units or 78% of its total 450 units since its launch in July 2017. Prices at Martin Modern have risen steadily from SGD2,152 psf at launch to over SGD2,600 psf currently.