The lack of competition for these prime residential sites is seen as a reflection of the current softening housing demand in Singapore, which has been impacted by the government’s property curbs and hefty taxes on foreign buyers. The joint ventures backed by billionaire Kwek Leng Beng’s City Developments Ltd. (CDL) and his cousin Quek Leng Chan’s GuocoLand submitted sole bids for two residential sites, with CDL partnering with Mitsui Fudosan for a site on Zion Road and GuocoLand partnering with a unit of Hong Leong Holdings for a site in Upper Thomson Road.
CDL and Mitsui Fudosan offered S$1.1 billion for the 15,278 square meter site on Zion Road, with plans to build 740 housing units spread across a 69-story and a 64-story residential block, as well as a 35-story tower with 290 serviced apartment rental units. The project is set to include a retail podium and will offer future residents panoramic views of the central business district and the city’s southern waterfront, with direct access to the Havelock MRT Station. Sherman Kwek, group CEO of CDL, expressed excitement about the partnership and their vision to create a new landmark in the River Valley enclave.
GuocoLand, on the other hand, partnered with Hong Leong Holdings to submit a bid of S$780 million for a residential site in Upper Thomson Road. The 32,024 square meter plot has the potential to accommodate about 940 residential units. The joint venture aims to develop the site into a prime residential project that will cater to the needs of the market. The lack of competition for these two prime residential sites reflects a trend of developers losing their appetite for prime residential development due to the current market conditions, according to experts.
The partnership between CDL and Mitsui Fudosan is seen as a strategic move to combine their expertise and resources to create a new iconic landmark in Singapore. The project is expected to pioneer the concept of longer-term stay rental apartments, complementing CDL’s focus on expanding their living sector portfolio. With the government yet to accept the bids for these two prime residential sites, the joint ventures remain optimistic about the potential to transform the River Valley enclave and Upper Thomson Road into sustainable landmarks that will shape Singapore’s property landscape in the future.
As Singapore’s housing demand softens, developers are increasingly cautious about investing in prime residential projects. The government’s property curbs and taxes on foreign buyers have played a significant role in dampening demand for high-end residential properties. However, the joint ventures between CDL and Mitsui Fudosan, as well as GuocoLand and Hong Leong Holdings, demonstrate a strategic partnership approach to navigate the challenging market conditions and capitalize on opportunities to develop prime residential projects in key locations in Singapore.
