Sunway—controlled by billionaire Jeffrey Cheah—and its partner Hoi Hup Realty won the auction for a residential property in western Singapore with their bid of S$371 million ($277 million), adding to signs the housing market in the city-state is heating up.
The duo is buying Flynn Park—an existing 72-unit residential condominium that sits on a 208,443-square feet (19,364-square meter) freehold land—in Singapore’s largest collective sale site this year, Savills Singapore, which brokered the deal, said on in a statement on Friday.
“The tender exercise for Flynn Park was keenly contested,” Galven Tan, deputy managing director for investment sales and capital markets at Savills Singapore, said in a statement.
Developers have been aggressively bidding for residential sites across island nation to replenish their land bank and address surging housing demand amid expectations the Singapore economy will gradually recover as the government eases pandemic-induced restrictions now that over 80% of the population have been fully vaccinated. Total private home sales in the Lion City climbed to 16,549 units in the first half, a 139% jump from the previous year, government data showed.
The partners are planning to develop a “premium” residential building on the site of Flynn Park, Wong Swee Chun, chairman and managing director of Hoi Hup Realty said in a statement.
“It’s a rare hill side plot that offers panoramic view to the South,” Wong said. “It’s tranquil, lush and green, yet enjoys proximity to the MRT network and is minutes to the city. It will also benefit greatly from its adjacency to the new Southern Waterfront development.”
Hoi Hup and Sunway’s Singapore subsidiary have been partners in the past decade. In 2017, the duo completed the construction of Royal Square at Novena, a 33-storey mixed-use development near the Orchard Road shopping belt that houses Marriott’s 250-room Courtyard hotel, a medical center and retail shops. Sunway sold its 30% stake in the project to Hoi Hup the following year to fund land banking activities and tap soaring housing demand in the city-state.
The partners are jointly developing several residential projects in Singapore, including the 700-unit Parc Central Residences in the eastern town of Tampines and the 660-unit Ki Residences in the prime Bukit Timah district in the west.
Sunway was founded in 1974 by Jeffrey Cheah, who built his fortunes in the past four decades by transforming his obscure tin-mining company into a conglomerate with interests in education, real estate, infrastructure, fintech and healthcare. With a net worth of $1.4 billion, Cheah was ranked No. 15 on the list of Malaysia’s 50 Richest that was published in June.