Keen interest seen for Martin Place site

[reporter2]

http://www.businesstimes.com.sg/real...tin-place-site

Keen interest seen for Martin Place site

Eight to 16 bids expected; consultants forecast top bid will be in the S$930-1,200 psf ppr range; URA stipulates maximum of 450 units for project

By Kalpana Rashiwala

[email protected]

@KalpanaBT

Apr 29, 2016


A RARE District 9 private housing site being offered at a state tender is generating much buzz in the market.

The developer of the nearly 1.6-hectare site located at the corner of Martin Place and River Valley Close may build 450 units at most - subject to a maximum gross floor area of 480,306.75 square feet.

Part of the site has a 20-storey height restriction, while the rest of the plot has a 30-storey height limit.

While the maximum of 450 units allowed for the project is understood to be due to traffic considerations in the locale, this stipulation will have other implications.

JLL national director Ong Teck Hui said that as a consequence, the average unit size in the project will be 1,067 sq ft. "This will mitigate aggressive attempts in developing too many small units in order to achieve a high per square foot price," he added.

Property consultants polled by The Business Times generally expect the site to garner keen interest due to the rare appearance of private housing sites in Singapore's prime districts in state land tenders. The site is expected to fetch eight to 16 bids.

However, R'ST Research director Ong Kah Seng predicts only four to seven bids - citing the project's sizeable development cost, notwithstanding developers' continued strong appetite when it comes to restocking their land bank.

Forecasts for the winning bid generally converged around the S$930-1,020 per square foot per plot ratio (psf ppr) band. However, Mr Ong of JLL was more bullish; he expects the top bid to come in at between S$1,000 psf ppr and S$1,200 psf ppr.

"While the absolute land price would be high and pricey end-products more difficult to market, the lack of new development opportunities as well as an improved mood in the market will probably result in keen competition for this site," he said.

Desmond Sim, the Singapore and South-east Asia head of CBRE Research, expects participation from the big boys at the tender. "Mid-sized players may form joint ventures to spread out the development risk; the total development cost for this project will be quite hefty, possibly around S$700 million."

Mr Ong of R'ST expects the winning bidder to sell units in the future project on the site at an average price of S$1,800-1,950 psf, assuming the project is launched in the first half of next year.

SLP International executive director Nicholas Mak highlighted that there are very few new 99-year leasehold residential developments in the area. "As a result, it is quite possible that the new condo project on this site will be launched within the next two years at prices that are near to the transacted prices of freehold condos in the vicinity."

The tender for the site, which is being conducted by the Urban Redevelopment Authority, closes on June 28.

[reporter2]

http://www.straitstimes.com/business...er-valley-site

Keen bidding expected for River Valley site

Apr 29, 2016

Rennie Whang


Some enthusiastic bidding is expected for a prime condo site in River Valley that was released for sale yesterday under the Government Land Sales programme.

This is despite a cap on the number of units that can be built, which means they will be larger and harder to sell.

The Martin Place 99-year leasehold plot can yield up to 450 units and is just the third site in District 9 to be made available in the past 10 years, noted Mr Nicholas Mak, SLP International executive director.

The stipulated maximum number of units works out to an average unit size of 1,067 sq ft. "This will mitigate aggressive attempts in developing too many small units in order to achieve a high rate per sq ft (psf)," said Mr Ong Teck Hui, JLL national research director.

The location is attractive, near a number of pubs and bistros with a vibrant nightlife offered at nearby Robertson Quay, said Dr Lee Nai Jia, DTZ regional head (SEA) of research. It is also connected to the central business district via park connectors, appealing to those who may want to cycle to work. The plot is close to River Valley Primary School and the future Great World MRT station, Dr Lee added.

Recent prices of resale units in nearby developments are from $1,700 to $2,000 psf, although these are mainly freehold in tenure, said Mr Ong of JLL.

The eventual land price could be about $1,000 to $1,200 psf per plot ratio, with about 10 bids.

"While the absolute land price would be high, and pricey end-products more difficult to market, the lack of new development opportunities as well as an improved mood in the market will probably result in keen competition for this site," said Mr Ong.