City Developments Limited (CDL) has secured the Tanjong Rhu Road Government Land Sales (GLS) site with a top bid of $1,455 per square foot per plot ratio (psf ppr), outbidding competitors by approximately 2.5%. This bid, which is 4.8% higher than the recent Bayshore Road GLS, highlights the developers’ confidence in the Tanjong Rhu area, according to Mark Yip, CEO of Huttons Asia.
The Tanjong Rhu site, the first GLS offering in the area since 1997, attracted five bidders eager to capitalise on its prime location. Situated near Katong Park and Tanjong Rhu MRT station, the site offers convenient access to the Central Business District and Changi Airport. Additionally, the East Coast Parkway and Marina Coastal Expressway are less than a five-minute drive away, enhancing its appeal.
Despite its advantages, the site presents challenges, including potential construction complexities due to reclaimed land and a height restriction limiting buildings to 100 metres. This constraint may cap developments at 30 storeys, aligning with nearby Housing Development Board (HDB) projects. The estimated selling price for properties on this site could start from $2,900 psf.
CDL’s acquisition of the Tanjong Rhu site adds to its recent GLS wins at Lakeside Drive, Senja Close, and Woodlands Drive 17, ensuring a steady pipeline for its property development business over the next three years.
