Record price expected for Sentosa condo site

Property
Published January 9, 2007

Record price expected for Sentosa condo site
Six bungalow plots awarded, with new benchmark price set at $1,308 psf


By KALPANA RASHIWALA


THE latest condo site being offered by Sentosa Cove Pte Ltd (SCPL) could fetch as much as $1,100 to $1,200 per square foot of potential gross floor area, market watchers say.


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Seaview Collection: The 157,108 sq ft condo site boasts a prime location, with unobstructed sea views and facing the Southern Islands. It can be built into an eight-storey condo with about 200 units in total


And a spokesman for SCPL revealed yesterday that an expression of interest for six sea-fronting 99-year leasehold bungalow plots that closed in November last year saw a new benchmark price set for bungalow land - $1,308 psf of land area, surpassing previous high of $1,130 psf achieved in October last year.

A new record for condo land in the upscale waterfront housing precinct is expected to be set for the latest condo plot offered yesterday, dubbed The Seaview Collection. It is being offered through a tender that closes on March 6.

Based on the $1,100 to $1,200 psf per plot ratio top bids predicted for the plot by some observers, the breakeven cost for a new project on the site is estimated at $1,600 to $1,750 psf.

Market watchers reckon a new 99-year leasehold condo on the plum site boasting sea views could fetch about $1,800 psf on average if marketed today.

Assuming current bullish sentiment in the luxury housing market continues to prevail, there will be further price upside in the location - which suggests potential bidders could still make a decent profit if they bag land for $1,100 to $1,200 psf per plot ratio.

The 157,108 sq ft plot is the second of four condo plots in Sentosa Cove's Southern Residential Precinct and can be built into an eight-storey condo with about 200 units in total.

The site has a 2.15 plot ratio - the ratio of maximum potential gross floor area to land area. The award will be based solely on price, SCPL said in a statement yesterday.

The last condo site sold at Sentosa Cove - the Waterfront Collection, also in the Southern Precinct - was awarded to Ho Bee late last year for about $919 psf ppr. That can be developed into a six-storey condo.

Seaview Collection boasts a more prime location, with unobstructed sea views and facing Southern Islands. It is next to an even more coveted site designated for a 15-storey condo at the entrance to Sentosa Cove's marina basin. This is expected to be offered later this year.

Knight Frank director Nicholas Mak reckons the winning bid for The Seaview Collection will exceed $1,000 psf ppr. 'The bidding for this site will add more fuel to the already hot market on Sentosa Cove,' he said.

A spokesman for SCPL also revealed yesterday that after an expression of interest exercise that closed in November last year, six seafront bungalow parcels offered on an individual basis have been awarded to the respective top bidders at prices ranging from $927 psf to $1,308 psf of land area, or absolute sums of $8.1 million to $17.2 million.

Singaporeans picked up four of the plots, with a Malaysian and an Indian buying one each.

A tender for the en bloc sale of two man-made islands - Pearl & Sandy in the Southern Precinct - also closed in November. Bids have been evaluated but an award is still pending approval from SCPL's parent ministry, the Ministry of Trade and Industry.

SCPL has sold all the land parcels in Sentosa Cove's Northern Residential Precinct - for a total of 1,528 homes.

The Southern Precinct will have 145 bungalow plots - of which 33 have been sold. The four condo plots in Southern Precinct are for development into 762 homes in total.

Jan 9, 2007

Sentosa Cove condo site expected to set new price record

Winning bid, to be awarded based on price alone, may exceed $1,000 psf

By Joyce Teo, Property Correspondent


ANOTHER prime oceanfront condominium plot has been released for sale at red-hot Sentosa Cove - and market watchers expect another record-setting price.

A developer may build 200 units to a maximum height of eight storeys on the 157,108 sq ft of land.

The tender, which will be awarded solely based on price, opens today and closes on March 6, said Sentosa Cove in a statement yesterday.

Sentosa Cove expects the site to attract strong interest from local and overseas developers, as it is one of only three remaining condo land parcels in the high-end residential enclave.

Property consultants said the winning bid for this plot, which faces the Southern Islands, is likely to be above $1,000 psf of potential gross floor area.

'This could set a new record land price for Sentosa Cove and add fuel to the already hot market there,' said Knight Frank's director of consultancy and research, Mr Nicholas Mak.

The previous record was set late last year by Ho Bee at $919 psf.

It was for a condo land parcel in the southern precinct of Sentosa Cove that can be built to a height of six storeys.

Since then, plans for Sentosa have become clearer with Genting International and its partner being awarded the integrated resort project there.

'Relative market values have gone up,' said Savills Singapore director for marketing & business development Ku Swee Yong.

Also, another development, Marina Bay Residences, has since set a new record for private home prices in Singapore, he said.

The Keppel group, too, has said it will launch its Keppel Bay condo in March or April at $1,500 psf to $2,000 psf.

Mr Ku thus expects bids to come in at between $1,100 psf and $1,200 psf of potential gross floor area.

The winning developer may then sell the new condo from September at prices starting from $1,800 psf to $2,000 psf, he said.

Mr Mak said the developer will have to sell at $1,900 psf to $2,000 psf if he pays $1,100 psf for the land.

'This is the current average price of prime properties like Ardmore Park,' he said.

In Sentosa Cove, the highest record from a developer sale remains at $1,810 psf for a unit at The Coast.

Ho Bee launched the 249-unit The Coast last October. It still has eight units left, which it is selling at about $1,600 psf.

Next, it aims to launch its 29 bungalows at Paradise Island in Sentosa Cove for sale in the next two months.

Prices of Sentosa Cove developments and plots have risen considerably in the past year.

At Ho Bee's 200-unit The Berth by the Cove for instance, the highest price done in the sub-sale market was $1,360 psf for a sea-facing unit last November.

The condo was launched at just $785 psf about two years ago.

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PRIME PLOT

Sentosa Cove expects the site to attract strong interest from local and overseas developers, as it is one of only three remaining condo land parcels in the high-end residential enclave.