Frasers-Mitsubishi Estate JV Places $476M Top Bid for Central Singapore Residential Site

Frasers Property and Mitsubishi Estate submitted the top bid of S$610.75 million ($476 million) for a residential site in central Singapore, edging out a rival offer from City Developments Ltd.

The joint venture’s bid for the Kallang Close plot translates to S$1,415 ($1,102) per square foot of potential built area, just 0.7 percent higher than CDL’s second-place offer of S$606.4 million or S$1,412 per square foot, according to tender results released Tuesday by the Urban Redevelopment Authority.

Spanning 123,311 square feet (11,456 square metres), the 99-year leasehold site offers a maximum gross floor area of 431,611 square feet, positioning it for a mid-sized residential development of 470 homes fronting the Kallang River.

“We are pleased to be the top bidder for the Kallang Close site, which enjoys great connectivity to the city centre,” Frasers Property Singapore CEO Soon Su Lin said in a release. “This presents a rare opportunity to deliver a top-quality waterfront residential development with a first-mover advantage, being the first to benefit from the long-term transformation of the nearby Kampong Bugis and Kallang Alive precincts, as well as the rejuvenation of the Kallang River corridor into a lifestyle destination.”

Emerging Precinct

The Kallang Close parcel is one of three private residential sites released by the URA in December under the Government Land Sales programme, alongside plots at Lentor Central and Dunearn Road, as part of efforts to maintain a steady pipeline of housing supply.

The Kallang Close tender drew four bids, with the Frasers-Mitsubishi JV topping a field that included a tie-up between Hong Leong Holdings’ Intrepid Investments and TID Residential, as well as a Winrich Investment-Metro Holdings partnership.

Huttons Asia CEO Mark Yip said the tender result reflected developers’ continued appetite for well-located sites in emerging precincts.

“This is the first GLS site for private residential living in the new Kampong Bugis precinct,” Yip said, noting that the waterfront location and city-fringe positioning are likely to appeal to buyers seeking connectivity and lifestyle amenities.

He added that the bid was supported by resilient demand in recent project launches, with the nearby Tanjong Rhu Road site awarded to a CDL-Woh Hup JV for S$1,455 per square foot in February. A decision on the award of the Kallang Close tender will be announced at a later date.

Frasers Property and Mitsubishi Estate said the project would be designed to capitalise on its frontage along the Kallang River, with plans for a riverfront promenade and publicly accessible features aimed at enhancing connectivity and placemaking.

The partners highlighted the site’s proximity to Kallang MRT station and its location within four stops of the central business district, alongside access to major expressways including the PIE, CTE and KPE.

Industrial Surroundings

Knight Frank Singapore research head Leonard Tay said the top bid came in within expectations, though the number of bidders was slightly below initial projections.

The S$1,415 rate was 2.7 percent lower than the Tanjong Rhu benchmark, reflecting differences in site attributes despite both parcels being in the same Kallang planning area, Tay said. He noted that the site’s river frontage and open views could help differentiate the project, while its proximity to MRT access enhances its appeal for owner-occupiers.

Tay cautioned that the surrounding industrial environment could temper pricing expectations compared with more established residential neighbourhoods. He estimated that launch prices could start from S$2,900 per square foot, with average selling prices slightly above S$3,000 per square foot depending on design and positioning.