Winchamp Investment, a unit of Wing Tai Holdings submitted a bid of nearly S$464 million, or about S$1,325 per square foot per plot ratio (psf ppr), for the site next to Great World MRT station. The competing bid from Hong Realty, part of the Hong Leong Group, was nearly S$444.89 million, or S$1,271 psf ppr.

The prime 99-year leasehold private housing site, known as River Valley Green (Parcel A), spans 100,032 sq ft and can accommodate approximately 380 private homes.

The latest state land tender reveals a continued cautious approach from developers towards private residential sites, influenced by high interest rates and property cooling measures.

Propertyforsale Managing Director, JT Chia, remarked, “The low interest in this Government tender indicates that developers are cautious, preferring smaller plots despite some interest.”

He also cited the pipeline of yet-to-be-launched projects and ample supply from the first-half 2024 Government Land Sales (GLS) programme as factors influencing developers' cautious stance.

Another deterrent for developers might be the complex construction considerations given the site’s irregular shape.

Wing Tai’s bid was 12.5% lower than the S$1,515 psf ppr paid by City Developments (CDL) in January 2020 for the GLS site occupied by Irwell Hill Residences.

Questions on Housing Demand

Private home buyers have become increasingly selective this year, with price resistance making them more cautious about their choices.

Property developers will remain cautious due to uncertainties about the depth of private housing demand following slower sales in 2023 and low transaction volumes in recent months amid limited project launches.

Attractive Location but Competing Supply

Despite River Valley Green (Parcel A)’s attractive location—adjacent to an MRT station, near Great World City mall, and River Valley Primary School—the project will face competition from upcoming new supply.

About 1,780 housing units will emerge from Zion Road Parcels A and B, including around 435 long-stay serviced apartments on Parcel A, awarded in April. Parcel B, a purely residential site next door, has been triggered for release from the reserve list of the GLS programme, with its tender closing on July 18.

Additional supply could arise if River Valley Green Parcel B, on the reserve list, is triggered for release. This plot can generate 580 residential units, including approximately 220 long-stay serviced apartments—a new rental concept introduced by the government in November last year.

Chia estimated that the new development could achieve an average selling price of S$2,800 psf.