Business Times: Wed, Oct 26
A 99-YEAR leasehold executive condo (EC) site at Yishun Avenue 7/ Canberra Drive drew a top bid of $213.78 million or $292.57 per square foot per plot ratio (psf ppr) when its tender closed yesterday. The offer came from MCC Land (Singapore).
A total of eight bids were received for the 292,277.6 sq ft site, which has a maximum permissible gross plot ratio of 2.5. This translates to a gross floor area (GFA) of about 730,693.9 sq ft.
Credo Real Estate executive director Ong Teck Hui noted that at $293 psf ppr, the top bid was in line with market expectations, and reasonable for a site in that location.
Chia Siew Chuin, director of research & advisory, Colliers International, noted: 'This is the highest unit land price achieved for an EC site in 2H 2011, particularly after market sentiment has been rocked by the debt crisis in the Western countries.
'It is also just about 4 per cent above the $281 psf ppr received for The Canopy EC site located at Yishun Avenue 11 in March 2010.
'At a land cost of $293 psf ppr, new EC units at the site are likely to break even at about $580 to $600 psf.'
CBRE Research executive director Li Hiaw Ho agreed, estimating breakeven cost to be around $600 psf.
He added: 'In July to September 2011, caveats were lodged for units of The Canopy EC at Yishun Ave 11 within the $600 to $700 psf price range. Units in the new EC project will likely be priced at similar levels.'
Martin Koh/ Sherry Tang