The site of a nursing home in Siglap may soon make way for a new residential development, after the site was put up for sale today at a guide price of $28 million. Located at 2 and 4 Jalan Ulu Siglap, off Upper East Coast Road, it is home to LC Nursing Home, a privately owned eldercare residential nursing home which has been operating there for more than 30 years.
But according to the press release by the marketing agent, CBRE, the 13,523 sq ft site has been positioned as a potential redevelopment opportunity for developers.
If it is picked up for a new non-landed residential development, the guide price translates to an indicative land rate of $1,462 psf per plot ratio (ppr). This includes the land betterment charge payable for an additional 7% gross floor area (GFA) for balconies that the new development might have.
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But if it is turned into a new landed housing scheme, the guide price translates to $2,070 psf on the land area. According to the latest Master Plan, the site - which has a street-facing frontage of 26m and a depth of 48m - has a baseline GFA of 18,713 sq ft, which in turn translates to a plot ratio of 1.38.
The site is already within a three-storey mixed landed enclave, and some of the nearby condos include The Hacienda, Crescendo Park, and Villa Marina. According to OneMap, Opera Estate Primary School is the only primary school that is within 1km of the site.
Parcels of freehold residential land in Siglap have always been highly sought-after but available plots rarely turn up on the market, says Michael Tay, Deputy Managing Director and Head of Capital Markets, Singapore at CBRE.
“Given the scarcity of such opportunities, the site presents an attractive proposition for developers, homeowners and investors seeking a strategic entry into a mature and affluent residential enclave underpinned by strong fundamentals,” he says.
Besides the usual non-landed redevelopment and landed housing scheme, there are alternative redevelopment options, such as a Service Apartment Type 2 (SA2) for long-term rental income and potential capital appreciation, says CBRE.
The SA2 scheme, also known as long-stay serviced apartments, is a pilot housing typology that URA introduced in 2023. It was rolled out to offer an alternative long-term housing option, with a minimum stay of three months, that would be more flexible compared to conventional serviced apartments.
But this option has not found ground with most developers, and only one government land sale site with this SA2 component has been awarded to date. This site is being developed into Zyon Galleria, which includes the 706-unit luxury residence Zyon Grand, in River Valley.
Strong demand for freehold development options
Freehold redevelopment opportunities are quite rare to come by, especially since the introduction of property cooling measures in 2018 hammered developers with a 60% additional buyers stamp duty (ABSD) when acquiring residential land for redevelopment.
As a result, the proportion of new freehold projects being launched for sale has started to dwindle as most developers turn to the 99-year leasehold GLS programme to top up their land banks.
Rising private residential property prices also means that the owners of freehold sites and developments have to ask for less than competitive prices if their development ever embarks on a collective sale attempt.
Nevertheless, the long-term value of freehold opportunities continues to appeal to a niche group of investors, including high-net-worth individuals and family offices who have been showing keen interest in acquiring such sites for redevelopment opportunities, says Joshua Giam, Director of Capital Markets, Singapore at CBRE.
He adds that the favourable interest rate environment has contributed positively to these investors and boutique developer’s interest in picking up freehold residential sites in some locales.
In March, Stacked reported that a freehold residential site at 5 Jalan Khairuddin in the Opera Estate was launched for sale at $25 million. At over 17,000 sq ft, the price for that landed home reflected a land rate of $1,435 psf.
How does the asking price compare?
Persistent demand for landed homes in Singapore have continued to support the growth of prices in this segment. And over in District 15, available freehold landed sites continue to see sustained price appreciation due to tightly held supply and persistent demand.
The latest transaction in Jalan Ulu Siglap was the sale of 17 Jalan Ulu Siglap, which sits on a 5,045 sq ft plot, that fetched $6.7 million ($1,328 psf on land area) when it was sold in April this year.
With a guide price of $2,070 psf for the site at Jalan Ulu Siglap, it is on the higher end of recent transactions for freehold landed plots in this part of District 15 that are of a similar size.
But the appeal of developing a new freehold project in this area in District 15 will appeal to some developers, given the site’s combination of freehold tenure, an address within an established landed enclave, and redevelopment opportunities.
The EOI exercise for the sale of 2 and 4 Jalan Ulu Siglap closes on July 15.
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