Low Keng Huat submits S$174.1 million top bid for Little India site

SINGAPORE — A mixed-use site in Little India has attracted strong interest from land-hungry developers, with Low Keng Huat (Singapore) Limited submitting the top bid of S$174.1 million, Urban Redevelopment Authority data showed after the close of tender on Tuesday (Jan 10).

The 99-year leasehold housing site, which includes commercial development on the first storey, was launched on November 29 from the Confirmed List of the Government Land Sales (GLS) programme for the second half of last year. It sits on 3,847.8 sq metres of land with a maximum permissible gross floor area (GFA) of 16,161 sq m, or about 173,955 sq ft, which can yield an estimated 200 housing units besides the commercial space. The top bid from Low Keng Huat, which beat 10 others, translates to S$1,000.72 psf per plot ratio.

The land parcel is near City Square Mall and Mustafa Centre within the Little India Historic District. Farrer Park Primary School, Hong Wen School and St Joseph’s Institution Junior are also in the vicinity.

Mr Nicholas Mak, Head of Research & Consultancy Department at SLP International Property Consultants, said: “One of the reasons that the subject site drew a relatively high number of bids is its attractive location as it is fairly close (about 120 metres) to Farrer Park MRT Station. Another reason is that within the next six months, this site is the only small non-landed development site which can yield less than 250 units. Its small and manageable size makes it less demanding on the resources of the developers.”

“In addition, given the current slow residential property market, land parcels with strong selling points and manageable size will attract many suitors,” he said.

The high land price and strong participation rate also underline the developers’ urgent need to replenish their land banks, Mr Mak added. The bullish response could also indicate that some developers are betting on the government relaxing the cooling measures in the near future, he said.