Residential Market News Extract - 21 September 2012

Surge in optimism reflected in Prince Charles Crescent tender

The quality of the bids received at the close of the tender for a 99-year leasehold residential site at Prince Charles Crescent reflects general optimism in the market. The site received a top bid of $516.3 million, or $960.28 per square foot per plot ratio (psf ppr).

The top bid was submitted by a tie-up between Wing Tai's Wingstar Investment, Metro Australia Holdings, and UE E&C's unit Maxdin. It trumped consultants' expectations in July, when the site was triggered, that it could fetch between $760-$850 psf ppr.

This represents a 13 per cent premium over the top end of market expectations, and beat the top bid put up for the Jervois Road parcel in February ($881 psf ppr).

The second highest bid for the plot, which has a site area of about 2.38 hectares, came in at $946.55 psf ppr, in a joint effort by Hong Leong Group's Intrepid Investments, City Developments's unit Verwood Holdings, and Hong Realty.

The site also attracted bids from Keppel Land's Sherwood Development ($980 psf ppr), Wheelock Properties's Pinehill Investments ($890.27 psf ppr), and Bay Front Land ($871.65 psf ppr), whose shareholders comprise World Class Land and Fragrance Group.

The lowest bid was submitted by Plan Achieve, at $805.69 psf ppr.

The Development Control guideline on the maximum allowable number of dwelling units which was announced earlier this month is applicable to this site if the planning permission for the proposed development is received on or after Nov 4, said URA. If the application is submitted before Nov 4, URA may impose requirements where necessary.

Source: Business Times – 21 September 2012

 

eCO sees bustling sales at launch

More than 220 of the 262 units released for sale at the 99-year-leasehold eCO in Bedok South Avenue 3 were snapped up on Wednesday, the first day of its preview, following pre-marketing efforts which kicked off just more than a month ago.

Marketing agents BT spoke with said units in the 748-unit project were selling at an average of $1,250 per square foot (psf). Buyers who committed to purchase on the first day enjoyed discounts of up to 18 per cent, based on a mix of early-bird, vicinity and loyalty discounts. The discounts have since been scaled back by about 4 per cent, pushing average selling prices up to about $1,300 psf.

The project, jointly developed by Far East Organization, Frasers Centrepoint and Sekisui House, comprises 246 suites, 220 Soho (small-office-home-office) apartments, 34 townhouses and 248 condominium units.

The developers said Singaporeans and Singapore permanent residents made up 95 per cent of the buyers.

Prices start at $745,000 for a 549-sq-ft suite with one bedroom.

Of the five towers launched, three are almost fully sold. While a good mix of one, two and three-bedroom units have been sold, the two-bedroom ones sold the fastest, said agents. Such units range from 581 sq ft to 1,098 sq ft, depending on the unit type.

eCO is estimated to get its TOP in 2017.

Source: Business Times – 21 September 2012