The government land sales (GLS) site at De Souza Avenue closed on July 18 with two bids. The highest bid of $278.9 million or $841 psf per plot ratio (psf ppr) was submitted by SL Capital (8) Pte Ltd, also known as Sustained Land pte ltd.

Located off Jalan Jurong Kechil in District 21, the 207,156 sq ft site has a maximum gross floor area (GFA) of 331,453 sq ft and could yield up to 355 residential units.

URA also requires the construction of an early childhood development centre spanning at least 5,382 sq ft as part of the tender requirements.

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The top bid of $841 psf ppr is 22.3% above the second highest bid of  $687 psf ppr submitted by Eng Seng Lee Construction’s subsidiary, Capital Development.

The site is within the Beauty World neighbourhood and will benefit from URA’s rejuvenation plans for the area in its 2019 Master Plan. Several new amenities will be constructed in the area, including a new integrated transport hub connecting Beauty World MRT Station and a bus interchange and a three-storey retail mall.

Mark Yip, CEO of Huttons Asia, points out that the site is close to two nature reserves: Bukit Batok Nature Park and Bukit Timah Nature Reserve.

"There has been a noticeable increase in private resale transactions in the Bukit Timah area" says Mohan Sandrasegeran, head of research and data analytics at SRI.

Non-landed private resale transactions in the area rose to 145 units in 2Q2024, up more than 10% q-o-q from the 131 units seen in 1Q2024. He estimates that 110 units were purchased by buyers with a private home address. The apparent steady demand suggests a potential pool of upgraders who have taken an interest in the area, adds Sandrasegeran.

Less than 200m from the De Souza Avenue GLS site, another GLS site along Jalan Jurong Kechil is being developed into the 258-unit Verdale by COLI Singapore and CSC Land Group, which was fully sold and completed last year. The joint venture partners won the site with a bid of $215 million, or $1,002 psf ppr.

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More recently, in November 2022, Bukit Sembawang Estates was awarded another GLS site along Bukit Timah Link for $200 million ($1,343 psf ppr). The 99-year leasehold site sits within a 2 km radius of the De Souza Avenue GLS site and will be developed into a 155-unit project consisting of one—to four-bedroom flats.

Leonard Tay, head of research at Knight Frank Singapore, and Wong Siew Ying, head of research and content at PropNex Realty, estimates a future launch price for the site to be about $2,000 psf. However, projections by SRI's Sandrasegeran place it higher at around $2,500 psf to $2,600 psf.

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