Experts anticipate limited bidding enthusiasm for Orchard Boulevard GLS site

The site may attract one to five bidders, said experts.

Experts are not anticipating an "aggressive bidding" for the Orchard Boulevard sire in the Core Central Region (CCR) launched for tender by the Urban Redevelopment Authority.

"Developers will be cognizant of the impact of April’s doubling of the additional buyer’s stamp duty (ABSD) rate for foreigners to 60% and they may have to tap the local demand pool more extensively to move sales for CCR homes,"  Wong Siew Ying, head of Research and Content at PropNex Realty, said.

"Local buyers may have different unit-mix requirements and tend to be more price-conscious compared to foreign buyers and investors," Wong added.

OrangeTee Deputy CEO Justin Quek and Huttons Senior Director for Data Analytics Lee Sze Teck shared similar sentiments.

"With the cooling measures crimping demand from foreigners, the unit mix, size and quantum will have to cater more towards the local market. While the smallish site may translate into a palatable quantum, developers are likely to tread carefully especially when interest rates may stay higher for longer," Lee said.

Quek, for his part, said: "Developers may remain cautious given the prevailing 60 per cent Additional Buyer’s Stamp Duty (ABSD) imposed on foreigners and higher ABSD for investors."

Quek anticipates two to five bidders for the site, with the highest bid price at $1,900-$2,100 psf ppr.  

Wong had a similar forecast, saying the site may attract three to four bids, with the top bid being $1,800 to $2,000 psf ppr.

Lee had a lower forecast of $1,500 psf ppr for the top bid and one to three bidders.