City Developments Limited (CDL) has emerged as the top bidder in the Urban Redevelopment Authority’s (URA) government land sales (GLS) tender for the Lakeside Drive site, offering $608m. This bid translates to a land rate of $1,132 per square foot per plot ratio (psf ppr), marking one of the highest rates for an Outside Central Region (OCR) residential GLS plot in recent years.
The tender attracted six bids, with the second-highest bid of $1,025 psf ppr submitted jointly by Frasers Property and MJR Investment, an affiliate of Mitsubishi Estate Group. The bid spread, with a 25% difference between the highest and lowest bids, indicates varying assessments of the site’s potential amongst developers.
The Lakeside Drive plot is strategically located near the Lakeside MRT station and offers proximity to schools and the Jurong Lake District (JLD). It also promises scenic views from the nearby Jurong Lake Gardens. Despite these advantages, there is some uncertainty about the depth of private housing demand, given slower sales at recent launches in Jurong and the absence of new condo launches in Jurong West for nearly nine years.
Wong Siew Ying, Head of Research and Content at PropNex, noted, “We anticipate there could be possible pent-up demand for private homes in this area, including from HDB upgraders who are currently residing in the Jurong area.”
The last major project in the area, Lake Grande, achieved a strong take-up rate of over 60% during its launch in July 2016 and sold out by 2018. With the top bid land rate, the average selling price for the future development on the Lakeside Drive plot is estimated to be above $2,400 psf.
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