Even though many developers are complaining about an oversupply of Sturdee Road Condo property, it hasn’t stopped them from showing an appetite for residential plum development land that is robust.
A good example is a choice private housing site with a 99 year leasehold that is situated close to the NEX shopping outlet and Serangoon MRT station. This site has drawn eager competition with 11 bids. This is over the 7 bids that another site, located a mere stop away from Bartley MRT station, brought in at its January 2014 close of tender.
The Serangoon site’s highest bid of $710 psf ppr was made by a group that comprises Hong Leong Holdings in Sturdee Road SL Capital Condo, City Development Ltd and TID. This bid was also over the Bartley site’s top bid of $648 per square foot, per plot ratio.
The Bartley site in Sturdee Road Sustained Land Condo, which was snapped up by the UOL Group, is currently being developed into a condo project called the Botanique at Bartley.
Keen Interest in SL Capital Condo
One analyst pointed out that the site at Serangoon, which runs along Lorong Lew Lian, sits in a plum location and set-up, which explains the keen competition and the higher bid.
At the site’s close of tender recently in Sturdee Road Condo Farrer Road, OUL joined up with Singland Homes, a unit of Singapore Land, which made them the 2nd highest bidder, offering $692 per square foot, per plot ratio. This bid was 2.5% under the winning bid.
Coming in third was FCL Topaz, a unit of Frasers Centrepoint, who joined up with Sekisui House with an offer of $688 per square foot, per plot ratio.
A joint bid of $588 per square foot, per plot ratio made between Koh Brothers’ KBD Ventures and Episca Land, a unit of Tuan Sing, came in as the lowest bid for Farrer Road Condo Sturdee Road.
William Liem, chief executive for Tuan Sing, stated that the bids that were made at the sites tender were quite rational, with the high bid only being 21% over the lowest. He further pointed out that all of the bidders were within a range that was similar, with the only difference being their assumption on the selling price. He said that Tuan Sing’s joint bid was made under the assumption that the average sale price would be $1,200 per square foot, wit the highest bid possible assuming a sale price of $1,300 per square foot or more.
Interest for Sturdee Road Condo Farrer Road
In a recent statement CDL made note of the proximity of the site being so close to the interchange station Serangoon RT, as well as a variety of other amenities. They further pointed out the number of distinguished schools located within the area, such as Maris Stella High School, Paya Lebar Methodist Girls’ secondary and primary schools and the Nanyang Junior College.
The group has shared that the Bendemeer Road Condo SL Capital planned scheme for this site is that of a twelve to thirteen storey condominium project that will house over 500 units. The higher floor apartments will have the benefit of a good view that spans across the housing domain.
CDL has stated that they have confidence in the sites potential and the precinct is one that they are quite familiar with, having developed jointly the 702 unit Bartley Residences that was sold in full, and Bartley Ridge, an 866 unit project that was 99% sold in Farrer Road Condo Sturdee Road.
One consultant commented, regarding the sites 11 bids, that as well as the attractive locale of the site, there are some developers who may want to refill their land bank with a market that has been subdued. Furthermore, the land parcel’s unlimited price quantum, whose bids ran from $265.9 million to $321 million, could well be in the range of a number of the larger sized consortiums and developers.
Sustained Land Condo
Given the number of bids drawn in and the bidding amounts that were submitted, we see proof real estate developers’ confidence that this location has a strong demand for private housing.
In September, this 1.4 hectare site was generated for release from the Government Land Sales Program’s reserve list. This followed an unnamed party’s successful application, with one of these bidders being at the recent tender for the site for Sturdee Road SL Capital Condo. The party’s aim was to make a bid of no less than $250 million, which would equate to $552.93 per square foot, per plot ration for the site.
The Business Times poled property consultants who forecasted at the time that the site would draw in between 5 and 12 bids. It was also predicted that the highest bid would run between $590 and $800 per square foot, per plot ratio.