The recent tender closing for the Orchard Boulevard Government Land Sales (GLS) site attracted five bids, with the highest bid reaching S$181.9m, equivalent to S$1,755 per square foot per plot ratio (psf ppr). This bid aligns with expectations for the prime Core Central Region (CCR) location, which is conveniently situated near the Orchard shopping belt. Leonard Tay, Head of Research at Knight Frank Singapore, noted that this represents a measured increase over the nearby site awarded in 2024 at S$1,617 psf ppr.
Developers remain keen on prime residential sites with evidence of demand and pricing support, particularly those with modest capital outlay and manageable project size. However, there is a noticeable trend of bid pricing discipline due to elevated development costs. The site’s relatively small size may have deterred some developers, as it could lead to increased development costs without economies of scale.
The site’s proximity to Orchard Road, Orchard Boulevard MRT station, and successful nearby launches make it attractive for developers. The tender results indicate a focus on achievable end-selling prices and development margins. The location is also appealing to expatriates due to its closeness to malls, offices, embassies, healthcare facilities, and entertainment venues. Based on the top bid, future developments could see average selling prices around S$3,600 psf.
