A joint venture between City Developments Limited (CDL) and Hong Leong Holdings has submitted the top bid of $1,865 per square foot per plot ratio (psf ppr) for a Government Land Sales (GLS) site on Peck Hay Road. The bid, totaling approximately $147.2 million, marks a strategic move by the developers to bolster their residential land bank in the prime Core Central Region (CCR).
Details of the Peck Hay Road Tender
The Urban Redevelopment Authority (URA) closed the tender for the 0.7-acre residential site on November 26, 2024. According to the official URA tender results, the CDL-Hong Leong partnership outperformed two other competing bids. The site is zoned for residential use with a maximum permissible gross floor area of 78,943 square feet and is expected to yield approximately 90 residential units.
The bid reflects a cautious yet opportunistic approach from major developers. Analysts note that while the site is located in the prestigious District 9, its relatively small size limits the scale of development compared to larger suburban plots, yet it offers high-end appeal for boutique luxury projects.
Why This Site Attracted Interest
The Peck Hay Road plot sits within the Newton planning area, placing it in proximity to prominent educational institutions and the Newton MRT interchange. According to EdgeProp Singapore, the site’s location is a primary driver for demand, as prime residential land in the CCR remains scarce.
The developers’ bid of $1,865 psf ppr suggests confidence in the luxury market’s resilience. By partnering, CDL and Hong Leong mitigate development risks while leveraging their combined balance sheets to secure prime assets. This partnership model has been a hallmark of their strategy in previous GLS tenders, allowing them to maintain a consistent pipeline of projects in a high-interest-rate environment.
Market Context and Comparisons
This tender follows a period of moderated land bidding sentiment in Singapore. In recent months, some GLS tenders have seen fewer participants as developers assess the impact of cooling measures and high construction costs.
| Metric | Details |
| :— | :— |
| Top Bidder | CDL & Hong Leong Holdings JV |
| Bid Price | $147.2 million ($1,865 psf ppr) |
| Location | Peck Hay Road (District 9) |
| Site Area | Approx. 0.7 acres |
| Expected Yield | ~90 residential units |
Compared to other recent land sales, the price point for the Peck Hay Road site signals that developers are still willing to pay a premium for high-quality locations that allow for quick project turnaround. While the total quantum is modest, the per-square-foot price underscores the continued value of the CCR for developers targeting affluent owner-occupiers and investors.
What Happens Next
The URA has not yet formally awarded the tender, though the top bid is currently under evaluation. Once the award is finalized, the developers will proceed with architectural planning and the submission of development charges.
The project is expected to target the high-end residential segment, likely featuring luxury specifications to justify the land cost. Investors will be watching for the project’s launch date, which will serve as a bellwether for buyer sentiment in the District 9 market for 2025 and beyond.