Singapore Companies
Published October 12, 2006

Ardmore Point sale sets new benchmark

Wing Tai's $1,369 psf ppr pips record set by Pin Tjoe Court last month


A NEW benchmark has been set for residential land in Singapore. Wing Tai Holdings' $201 million purchase of Ardmore Point in plush Ardmore Park reflects a price of $1,369 psf of potential gross floor area including a $31 million development charge (DC).

This surpasses the $1,358 psf per plot ratio (ppr) record set last month for the adjacent Pin Tjoe Court. Both deals were handled by CB Richard Ellis.

And another record could be set in the area if the owners of Anderson 18, behind Ardmore Point, get their way. Their reserve price is $411.2 million, which reflects a unit land price of $1,450 psf per plot ratio including DC. Knight Frank is said to be close to collecting signatures from owners controlling the mandatory minimum 80 per cent of share values in the estate.

All three sites are freehold and zoned for residential use with a 2.8 plot ratio and 36-storey height limit.

Anderson 18, next to Raffles Girls' Secondary School and a stone's throw from Shangri-La Hotel, has a land area of 112,100 sq ft. The site can be redeveloped into a new condo with about 175 units averaging 1,800 sq ft.

On Ardmore Point's collective sale, CB Richard Ellis says owners of existing units will receive $2.3 million to $7.8 million - about 70 per cent more than their units would have fetched if sold individually.

Wing Tai may redevelop the 60,533 sq ft freehold site into a new condo with about 95 units averaging 1,800 sq ft. Market watchers reckon the company's breakeven cost for a new condo could be around $1,800 to $1,9000 psf.

Market watchers say Wing Tai's top bid may have been inspired by its recent success with the Draycott 8 condo nearby. It is said to be selling units in the completed development, built on a site with a remaining tenure of around 90 years, for about $1,800 psf to slightly over $2,000 psf. So far, Wing Tai is said to have sold about 62 per cent of the 136 units in the development.