SINGAPORE - Local developer Hoi Hup Realty and Malaysian conglomerate Sunway have acquired two freehold land parcels in Singapore's prime District 15 for $815 million.
The parcels are part of an extensive residential development site, the largest sold since the July 2018 cooling measures, noted Savills Singapore, which brokered the deal.
The deal represents the highest price paid in a single transaction for residential development land since a Government Land Sales plot in Silat Avenue went for $1.035 billion in May 2018, according to reports.
The transaction, which followed a tender exercise that closed on Thursday (Nov 18), comprises 22 plots across the two land parcels. These are occupied by five bungalows and 10 pairs of semi-detached houses in Thiam Siew Avenue, which is between Tanjong Katong and Haig Road, with a land area of approximately 264,000 sq ft.
Thiam Siew Avenue is within walking distance of the Paya Lebar and Dakota MRT stations, and near the Kong Hwa, Haig Girls' and Tanjong Katong primary schools.
Sunway said on Friday that the area will be redeveloped into a new private residential development at a gross development value of $2 billion - its projected value after being completed and put on sale.
Hoi Hup chairman and managing director Wong Swee Chun said it will comprise two high-rise condominiums with more than 800 units.
Based on the sale price of $815 million and a further estimated development charge of approximately $284 million, the land price works out to about $1,488 per square foot per plot ratio.
Mr Nicholas Mak, ERA Realty's head of research and consultancy, said units could be launched at between $2,400 and $2,630 per square foot.
The deal is Sunway's second major acquisition here this year after it secured the freehold Flynn Park site in Pasir Panjang for $371 million in September.
Its launched projects here include Ki Residences in Clementi and Parc Central Residences, an executive condominium in Tampines.