23/04/2019
"BULLISH" PRICE
Ms Christine Li, director of research at Cushman & Wakefield Singapore, said the latest sale will have implications on future en bloc deals.
“Looking at the price, it is relatively bullish which means choice sites are still highly contested by both the local and foreign developers. It probably means it is the new benchmark prices set for Katong area. That will actually help some of the existing projects - particularly the older projects - which are interested to go for en bloc to look at the new price point.”
“From next year onwards we are going to see developers launching new projects at a higher prices, probably 10 to 15 per cent higher than what we have been seeing in the market today.”
Mr Desmond Sim, head of research at CBRE Singapore and Southeast Asia, agreed with Ms Li - he said the sale price reflects the huge appetite and optimism among developers.
“En bloc seems to be the rage now. The price points out that there are still developers out there that are still hungry for land and what's happening at the Government Land sales at the moment does not suffice to appease their hunger. Developers are also looking forward instead of backward pricing, that's why we see such competitive bids coming through.”
ESTABLISHED PRIVATE RESIDENTIAL ENCLAVE
Mr Tan Hong Boon, regional director at JLL, said: “There are not many sites of similar size that are available for redevelopment in the Amber Road location ... Amber Park could possibly be one of the last collective sale sites with a land area above 200,000 sq ft in this precinct.”
The Amber Road area is an established private residential enclave that enjoys a strong following from both locals and expatriates alike, due to its proximity to the central business district, East Coast Park and the airport.
The site is also within 1km to Tanjong Katong Primary School and 2km to CHIJ (Katong) Primary, Haig Girls’ School, Kong Hwa School and Tao Nan School, which are popular primary schools.
Connectivity will be further enhanced when Tanjong Katong MRT station, located 200m from the site, is completed in 2023.
Mr Sherman Kwek, CDL CEO-designate, said: “This is one of our most significant investment deals in the Singapore residential market in recent years. CDL was the original developer for Amber Park in the 1980s and we are honoured to be able to redevelop the site into yet another iconic landmark.”
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Amber Park condo owners are expected to receive gross sale proceeds of between S$4.3 million and S$8.3 million from the collective sale.
