Sim, Head, CBRE Research, Singapore and South East Asia:
past few tender bids have garnered a lot of interest and we expect similar
levels of between 10 and 15 bids each for the two residential plots. Developers
are bidding for the future. Shoring up their land banks is a top priority now
given that as the unsold inventory is steadily reducing. The Stirling Road site
is a prime plot located on elevated ground and developers will price in the
views offered by the site. Smaller cap developers might be deterred by the
quantum but this can very easily be overcome by partnering with a joint venture
partner to spread development risk. The site will garner interest from local as
well as foreign parties like SP Setia who won the bid for the recent tender of
the Toh Tuck site.
Lorong 1 Realty Park site is a landed plot and offers a different value
proposition from the Stirling Road site. It is slated for landed low density
housing, which is limited in supply. It being a fairly small site with 50
landed homes will attract small to mid cap developers. 99-year leasehold terrace houses in the neighbourhood are currently
transacted in the resale market at $1.5 mil to $2.0 mil. The site could fetch
$60mil to $70mil ($420-$480 psf on land area.)
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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