Frasers Property-Mitsubishi Estate tops bid for Kallang Close GLS site at $1,415 psf ppr

The government land sale (GLS) site at Kallang Close drew four bids at the close of its tender on April 7, with a joint venture between Frasers Property and Mitsubishi Estate emerging as the top bidder.

The consortium submitted a bid of $610.75 million, or $1,415 psf per plot ratio (psf ppr), marking the first joint venture between the two partners.

The second-highest bid came from City Developments Ltd (CDL), at $606.4 million ($1,405 psf ppr).
The remaining bids were submitted by a Hong Leong Holdings–TID joint venture at $1,301 psf ppr, followed by a Wing Tai Holdings–Metro Holdings consortium at $1,242 psf ppr.

The gap between the top and second-highest bids was just 0.7%, reflecting keen competition for the site.

However, the 13.9% spread between the highest and lowest bids “suggests differing views on pricing sensitivity and market conditions”, says Marcus Chu, CEO of ERA Singapore.

First GLS site in the Kallang Planning Area in 12 years

Located within the Kallang Planning Area, the 123,320 sq ft, 99-year leasehold site could yield about 470 homes. It is the first GLS site launched in the Boon Keng, Kallang Bahru and Kampong Bugis precinct in 12 years, according to Frasers Property and Mitsubishi Estate.

“If awarded, the consortium intends to deliver a waterfront residential development that enhances the Kallang River frontage, with publicly accessible features such as a riverfront promenade to foster connectivity, community engagement and vibrancy,” says Soon Su Lin, CEO of Frasers Property Singapore, on behalf of the consortium.

The site is adjacent to the Kallang River and within walking distance of Kallang MRT Station (East-West Line) and Bendemeer MRT Station (Downtown Line). It is also a short drive to the CBD.

Kallang MRT station is slated to be integrated with a new bus interchange under the upcoming Kallang Horizon public housing project, which will include amenities such as shops, a childcare centre and public spaces.

Schools within a 1-2km radius include Geylang Methodist School, Hong Wen School, Bendemeer Primary and Secondary Schools, and Farrer Park Primary School. James Cook University and Nexus International School are also nearby.

Retail amenities in the vicinity include Bugis Junction, Kallang Wave Mall, Old Airport Road Food Centre and Upper Boon Keng Food Centre, notes Mark Yip, CEO of Huttons Asia.

The city-fringe location in District 12, within the Rest of Central Region (RCR), also offers access to the Kallang Park Connector and nearby green spaces, including Kallang Riverside Park.

The site is expected to benefit from the future Kallang Close Riverside Promenade, as well as the broader transformation of Kampong Bugis, which could introduce about 4,000 new waterfront homes over the longer term.

It will also benefit from the Kallang Alive Masterplan — a long-term vision to transform the precinct into a hub for sports, entertainment, recreation and lifestyle activities, anchored by the Singapore Sports Hub, now known as The Kallang.

“As the maiden project along the Kallang River Identity Corridor, the joint developers could benefit from a first-mover advantage in the area,” says Tricia Song, head of research for Singapore and Southeast Asia at CBRE.

Waterfront location, other RCR comparables

Huttons’ Yip notes that “developers continue to display a hunger for well-located and rare sites that can offer first-mover advantage and support their development pipeline over the next few years”.

He adds that the site’s location next to the Kallang River offers buyers a rare opportunity for waterfront living in land-scarce Singapore.

The tender outcome is broadly in line with recent GLS results, notes Mohan Sandrasegeran, head of research and data analytics at SRI.

For comparison, the Tanjong Rhu GLS site — which drew five bidders — was awarded at $1,455 psf ppr to CDL and Woh Hup in February, about 2.7% higher than the top bid for Kallang Close.

Another comparable is the Dorset Road GLS site, awarded in October 2025 at $1,338 psf ppr to a consortium comprising UOL Group, Singapore Land Group and Kheng Leong Co.

“Despite the site’s city-fringe location, riverfront attributes and proximity to Kallang MRT station, the tender drew relatively moderate interest with four bids, possibly due to the presence of nearby light industrial estates,” says Wong Siew Ying, head of research and content at PropNex.

“While such uses may not necessarily result in major disamenities, buyer perception remains a key consideration, and developers would have factored this into their bids,” she adds.

CBRE’s Song sees the more subdued bidding as “indicative of developer selectiveness amid heightened economic uncertainty and risks of higher construction costs due to supply chain disruptions arising from the ongoing Middle East conflict”.

Expected average selling price of $2,750 psf

The top bid of $1,415 psf ppr came in slightly above expectations, which PropNex attributes partly to the limited new private housing supply. Based on the top bid, PropNex estimates that the future development could achieve an average selling price of above $2,750 psf.

CBRE’s Song estimates the average selling price of the future project to be in the range of $2,700 to $2,800 psf.

Existing freehold projects such as the 96-unit The Riverine by the Park and the 212-unit Kallang Riverside are smaller developments and recorded low transaction activity in 2025, with median prices of $2,035 psf and $2,436 psf, respectively, notes Song.

Nearby 99-year leasehold projects — including the 600-unit Citylights and the 197-unit Southbank, which are closer to Lavender MRT Station — recorded median prices of $1,952 psf and $1,920 psf, respectively.

PropNex’s Wong notes that there has not been a new private condo launch along this stretch of the riverfront for over a decade — since The Riverine by the Park and Kallang Riverside were launched in 2007 and 2014, respectively.

In the wider Kallang Planning Area, recent launches include the 107-unit Arina East Residences (redevelopment of the former La Ville site) in District 15, launched last year; and the 172-unit The Arcady at Boon Keng (redevelopment of the former Euro-Asia Apartments) in District 12, launched in January 2024. Both projects are freehold.

Scarcity of new projects, pent-up demand

“Given the scarcity of new projects in the vicinity, there may be healthy buying demand for the future project [at Kallang Close], especially from homebuyers seeking city-fringe waterfront living,” says Justin Quek, deputy group CEO of OrangeTee & ETC.

The limited pipeline of new private housing could also lead to pent-up demand, particularly from HDB upgraders in Kallang and Geylang, says PropNex’s Wong.

Based on HDB resale data from January 2025 to March 2026, 961 flats were sold in Kallang/Whampoa and 807 in Geylang. Of these, 179 transactions in Kallang/Whampoa and 76 in Geylang were for at least $1 million, notes PropNex.

Upcoming MOP completions may further support demand. Projects such as the 243-unit Kallang Residences and 319-unit Pine Vista in Geylang are expected to reach their five-year minimum occupation period (MOP) in 2026. “These flat owners may consider monetising their homes and upgrading to private property,” says Wong.

Demand for homes in the Kallang area has generally remained strong, observes Realion’s Quek, “as reflected in the robust application rates for BTO flats in the area”.
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He estimates that about 1,000 four-room flats in Kallang/Whampoa will fulfil their MOP between 2026 and 2028, which could form a key demand pool for the future project. “These upgraders are likely to be supported by strong resale prices in the area, given its established city-fringe location and proximity to amenities and MRT stations,” says Quek.