The government land sale (GLS) tender for the Kallang Close site concluded today, drawing four bids with the highest at S$1,415 per square foot per plot ratio (psf ppr). This bid was 2.7% lower than the S$1,455 psf ppr achieved at the Tanjong Rhu Road tender in February, both located in the Kallang planning area. Leonard Tay, Head of Research at Knight Frank Singapore, noted that the top bid was within expectations, though the number of interested developers was slightly below projections.
The Kallang Close plot is notable for its riverfront location, offering potential for open views and a unique living environment centred around water-based activities. Its proximity to Kallang MRT Station enhances its appeal for commuters, being close to the Central Business District and Orchard Road. However, the industrial surroundings may deter some buyers compared to more residential areas.
The site is expected to attract owner-occupiers, particularly professionals, dual-income families, and upgraders from Build-To-Order (BTO) units, seeking a city-fringe location with MRT access. The Kallang Alive Master Plan, which includes the Singapore Sports Hub, adds to the site’s attractiveness and potential for capital appreciation.
The top bid of S$610.8m suggests a potential selling price at launch starting from S$2,900 psf, averaging just above S$3,000 psf. The success of this pricing will depend on the developer’s ability to leverage the waterfront aspect through design and layout. A new project launch is anticipated in about a year, likely leading to a price increase in the Kallang Planning Area, coinciding with the Tanjong Rhu project launch.
