Kallang Close site draws four bids at $1,415 psf ppr

Analysts cite upside and constraints.

The Kallang Close government land sale site drew four bids, with Frasers Property and Mitsubishi Estate-linked entities submitting the top offer of $610.8m, or $1,415 per square foot (psf) per plot ratio.

Huttons said the result reflected continued developer appetite for rare city-fringe sites and framed the plot as the first private residential GLS site in the new Kampong Bugis precinct.

The firm said its Kallang River frontage, accessibility, and early-mover advantage in a future waterfront neighbourhood supported the bid.

On the other hand, Knight Frank said the top bid was within expectations, although bidder participation was slightly below what had been anticipated.

It said the riverfront setting and proximity to Kallang MRT station should support owner-occupier demand, but added that the surrounding industrial environment may weigh on buyer perception.

Realion added the healthy response was not surprising given the site’s waterfront appeal, closeness to Kallang and Bendemeer MRT stations, and the prospect of wider rejuvenation along the Kallang River.

The firm added that limited new launch supply nearby and future demand from HDB upgraders in Kallang/Whampoa could support the eventual project.

Meanwhile, PropNex said the land rate was the second-highest achieved for a pure residential Rest of Central Region GLS site after Tanjong Rhu Road earlier this year.

It said nearby light industrial estates likely tempered bidding interest, but argued that the site’s riverfront location, early-mover potential, and limited private housing supply in the area should still underpin demand, with the future project potentially averaging above $2,750 psf.

CBRE said the four-bid turnout was the lowest for a private GLS plot in 2026 so far, even though the top bid was within expectations.

It said developers may have turned more selective amid economic uncertainty and construction cost risks, but noted that the site’s waterfront position, MRT access, and nearby upgrader pool should still support a future launch, which CBRE estimated could average $2,700 psf to $2,800 psf.