Property developers continue to vie for 2 maiden land sales of 2020
The Irwell Bank Road site was sold at below market expectations.
Despite a substantial supply of new private homes in the pipeline, the first 2 government land sales of 2020 have reflected developers’ positive sentiments.
However, the top bids received for both sites present a huge contrast in terms of interest level.
A 99-year leasehold private residential site at Irwell Bank Road drew a top bid of $583.89 million (or $1,515 psf ppr) from real estate powerhouse City Developments Ltd (CDL).
There were 6 other bids involved in this tender, coming from other big-name developers such as Far East Organization and Frasers Property, etc.
The top bid for the Irwell Bank Road GLS site was well below the expected land rate of $1,600 to $,1800 psf ppr, which was forecasted by property consultants.
Based on the land price, the estimated breakeven price for the 3.6-ha site would be in the range of $2,200 to $2,300 psf. Hence, a conservative selling price for the future new launch condo would be approximately $2,700 psf on average.
CDL has plans to redevelop the site into a 36-storey private condominium (2 blocks) with around 580 private residential units in total.
It was also noted that the sale price of the Irwell Bank Road site is around 12.5 percent lower than what Frasers Property paid for the nearby Jiak Kim Street site ($1,733 psf ppr) back in December 2017.
The new launch at Jiak Kim Street is now a 455-unit mixed residential & commercial development, known as Riviere.
Another 99-year leasehold site at Jalan Bunga Rampai (within the Bartley precinct) drew a total of 9 bids from various real estate developers.
The top bid came from Wee Hur Development at $93.39 million (or $885.33 psf ppr). It was around 16.6 percent higher than the second-placed bid of $80.1 million (or $759.34 psf ppr) from Sim Lian Land.
Analysts mentioned that the top bid received for the Jalan Bunga Rampai GLS site has suggested that sale prices within the Rest of Central Region (RCR) remain stable due to a positive outlook.
Wee Hur Development’s bid for the site will translate to a breakeven cost of approximately $1,400 to $1,450 psf. The 0.47-ha plot is expected to yield an estimate of 115 private homes.