http://www.businesstimes.com.sg/arch...cent-triggered

Published July 31, 2012

Reserve site at Prince Charles Crescent triggered

By Mindy Tan


A RESIDENTIAL site at Prince Charles Crescent has been triggered for sale by public tender after a developer offered a bid of at least $390 million for the plot.

Based on a maximum permissible gross floor area of some 537,656.8 sq ft, this translates to approximately $725.40 per square foot per plot ratio (psf ppr).

The 99-year leasehold site has a site area of about 2.38 hectares and a height limit of 153 metres above mean sea level.

The regular-shaped site is nestled within a prime residential area next to Crescent Girls' School and is a short drive away from the CBD and Orchard belt.

Consultants expect bids to come in the $800-$850 psf ppr range.

"Bids for the site are likely to be cautious taking into account the performance of projects in the central region of Singapore, the requirement to complete and sell the project within five years to avoid paying the additional buyers' stamp duty (ABSD), and the absolute quantum of the bid," said Lee Sze Teck, senior manager, research and consultancy, at DWG.

Mr Lee said he expects up to six bidders for the site, with the top bid in the range of $800-$850 psf ppr.

Ong Kah Seng, director, R'ST Research expects between seven to 10 bidders for the site, with the top bid in the range of $800-$850 psf ppr.

"Expectations and developer interest for sites in the Rest of Central Region have improved as there is increasing recognition that the city fringes offer both affordable homes for buyers and investors in mid- and upper-mid income segments, and such homes have tested property investment fundamentals," noted Mr Ong.

He added: "Developers are likely to continually favour sites in Rest of Central Region to mitigate risks in the brewing supply of new homes in suburban locations."

Png Poh Soon, head of research at Knight Frank Singapore expects keen interest (between five to eight bidders) in the site, given its prime location. He expects the winning bid to come in at between $780-$850 psf ppr, and the selling price to be between $1,500 and $1,600 psf.

Nicholas Mak, executive director of SLP International's research and consultancy arm, expects the site to fetch a winning bid of between $760-$820 psf ppr.

"Although the site is attractively located, this tender could attract a moderate level of interest from developers, possibly about four to nine bids as the high land price could exclude some smaller players," said Mr Mak.

He added: "Recent transacted prices of two of the newer condominiums near the subject site namely Ascentia Sky and The Metropolitan Condominium are $1,462 psf and $1,339 psf respectively.

"The winner of this tender could aim to launch the project at above $1,400 psf, due to its proximity to the prestigious Tanglin planning area."

The subject site will be launched for public tender in about two weeks.

Unlike confirmed list sites, which go on sale on a particular date, reserve sites are triggered for sale only when a developer agrees to pay an acceptable minimum sum.