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08-12-11, 16:06
http://www.businesstimes.com.sg/sub/news/story/0,4574,468541-1323287940,00.html?
Published December 7, 2011
Alexandra site draws top bid of $396m
By MINDY TAN
A 99-year residential parcel at Alexandra Road yesterday fetched a top bid of $396 million, or approximately $750 per square foot (psf) per plot ratio (ppr).
The top bid, which was put up by a consortium comprising City Developments' unit Sunmaster Holdings, Hong Leong Group's Intrepid Investments and Hong Realty's Garden Estates, came in higher than the $600 to $650 psf ppr earlier predicted.
The adjacent Ascentia Sky site, which is being developed by Wing Tai Holdings, saw six units sold at a median price of $1,432 in October. According to Li Hiaw Ho, executive director, CBRE, units in the new projects could be priced around this level, when launched next year.
Tanglin Land was the second highest bidder, at $363 million, or approximately $690 psf, while Keppel Land unit, Sherwood Development, came in at $339.58 million, or approximately $650 psf ppr. These bids came in 9.1 per cent and 16.6 per cent lower than the top bid, respectively.
'The keen interest and bidding by the consortium is spurred by the rare availability of an attractive site situated in a convenient and established location at the city fringe area that is generally popular with homebuyers and investors,' noted Chia Siew Chuin, director of research & advisory, Colliers International.
She cited the proximity of the site to Redhill MRT station and other amenities, and recent robust sales data for new project launches as possible factors boosting confidence levels.
At a land cost of $754.38 psf ppr, new home units at the site are likely to breakeven in the region of about $1,300 psf, consultants agree.
Lee Sze Teck, senior manager, research and consultancy at Dennis Wee Group (DWG) added that while the final tender price was within expectations given the size of the site and market conditions, developers appear to have adopted a more cautious stance, judging from the difference of 18 per cent in bid price between Ascentia Sky and the subject site. Ascentia Sky's plot was sold in December 2007 at $639 psf ppr.
Mr Lee posited that the breakeven should fall within the range of $1,200 to $1,300 psf, and that the project could be launched at around $1,500 to $1,600 psf.
The site, which has a maximum gross floor area of about 524,900 sq ft, attracted a total of seven bids; it was flagged as one of the more attractive sites in the Government Land Sales programme.
According to Credo Real Estate executive director Ong Teck Hui, 'seven bidders for this site does not indicate a loss in market interest'.
'The total value of this site at close to $400 million is quite a hefty sum compared to suburban sites which typically fetch below $200 million and that could have narrowed the playing field,' he added.
If awarded, the consortium plan to build a residential development that may reach more than 40 storeys, with an expected launch in 2012, said a CDL spokesperson.
'Given the strong demand for homes in Singapore in mature and established districts that are located near MRT stations and town, we expect this development to be highly sought after,' the spokesperson added.
Published December 7, 2011
Alexandra site draws top bid of $396m
By MINDY TAN
A 99-year residential parcel at Alexandra Road yesterday fetched a top bid of $396 million, or approximately $750 per square foot (psf) per plot ratio (ppr).
The top bid, which was put up by a consortium comprising City Developments' unit Sunmaster Holdings, Hong Leong Group's Intrepid Investments and Hong Realty's Garden Estates, came in higher than the $600 to $650 psf ppr earlier predicted.
The adjacent Ascentia Sky site, which is being developed by Wing Tai Holdings, saw six units sold at a median price of $1,432 in October. According to Li Hiaw Ho, executive director, CBRE, units in the new projects could be priced around this level, when launched next year.
Tanglin Land was the second highest bidder, at $363 million, or approximately $690 psf, while Keppel Land unit, Sherwood Development, came in at $339.58 million, or approximately $650 psf ppr. These bids came in 9.1 per cent and 16.6 per cent lower than the top bid, respectively.
'The keen interest and bidding by the consortium is spurred by the rare availability of an attractive site situated in a convenient and established location at the city fringe area that is generally popular with homebuyers and investors,' noted Chia Siew Chuin, director of research & advisory, Colliers International.
She cited the proximity of the site to Redhill MRT station and other amenities, and recent robust sales data for new project launches as possible factors boosting confidence levels.
At a land cost of $754.38 psf ppr, new home units at the site are likely to breakeven in the region of about $1,300 psf, consultants agree.
Lee Sze Teck, senior manager, research and consultancy at Dennis Wee Group (DWG) added that while the final tender price was within expectations given the size of the site and market conditions, developers appear to have adopted a more cautious stance, judging from the difference of 18 per cent in bid price between Ascentia Sky and the subject site. Ascentia Sky's plot was sold in December 2007 at $639 psf ppr.
Mr Lee posited that the breakeven should fall within the range of $1,200 to $1,300 psf, and that the project could be launched at around $1,500 to $1,600 psf.
The site, which has a maximum gross floor area of about 524,900 sq ft, attracted a total of seven bids; it was flagged as one of the more attractive sites in the Government Land Sales programme.
According to Credo Real Estate executive director Ong Teck Hui, 'seven bidders for this site does not indicate a loss in market interest'.
'The total value of this site at close to $400 million is quite a hefty sum compared to suburban sites which typically fetch below $200 million and that could have narrowed the playing field,' he added.
If awarded, the consortium plan to build a residential development that may reach more than 40 storeys, with an expected launch in 2012, said a CDL spokesperson.
'Given the strong demand for homes in Singapore in mature and established districts that are located near MRT stations and town, we expect this development to be highly sought after,' the spokesperson added.