Two freehold development plots on Thiam Siew Avenue (District 15) were sold for S$815 million through public tender on November 18, 2021, making the 263,794 sq ft area the highest land transaction so far in 2021.
A joint venture between Hoi Hup Realty and Sunway Developments won the prime plots with the help of Savills Singapore as the sole marketing agency. According to the URA Masterplan 2019, the 22 plots of freehold residential construction sites are classified as “residential,” with a plot ratio of 2.8.
Thiam Siew Avenue, which runs between Tanjong Katong Road and Haig Road, is bordered on both sides with single-story pre-war semi-detached homes and bungalows. They belonged to hotelier and former chairman of Ban Leong & Co, Wee Thiam Siew, who died in 1972 and was handed to family members via Thiam Siew Avenue Investments and Wee Thiam Siew & Co. Wee also owned the Lion City Hotel and the adjacent Hollywood Theatre on Tanjong Katong Road until selling it to UOL Group for S$313 million in 2011.
The Thiam Siew Avenue plots are close to two MRT stations (EW8/CC9 Paya Lebar Interchange MRT station and CC8 Dakota MRT station), therefore their closeness to the Paya Lebar Central area may result in higher buyer demand once the sites are completely completed. Kong Hwa, Haig Girls’, and Tanjong Katong Primary Schools are all within 1km of them.
With a selling price of S$815 million and a development fee of S$284 million, the land costs around S$1,488 per plot ratio (ppr). The final land price would be about S$1,440 ppr if we add the 7% bonus balcony (development fee estimated at S$39.3 million).
“We are ecstatic to have achieved such a positive outcome for the suppliers. Thiam Siew Avenue is a well-established and established neighborhood with excellent locational advantages. We congratulate Hoi Hup and Sunway on their successful bid for this prized location. The sale also represents the biggest residential construction site sold since July 2018,” according to Galven Tan, Savills Singapore’s Deputy Managing Director, Investment Sales and Capital Markets.
“We are ecstatic to have secured these two very rare Freehold sites in the East.” We are confident in the demand for excellent freehold projects in today’s competitive real estate market, particularly for these large freehold sites in District 15. Wong Swee Chun, Chairman and Managing Director of Hoi Hup Realty, said, “Our objective is to create two premium high-rise condos with over 800 apartments.”