08/10/2024
๐๐จ๐ซ๐จ๐ง๐ ๐ ๐๐จ๐ ๐๐๐ฒ๐จ๐ก ๐ฉ๐ซ๐ข๐ฏ๐๐ญ๐ ๐ก๐จ๐ฎ๐ฌ๐ข๐ง๐ ๐ฌ๐ข๐ญ๐ ๐๐ซ๐๐ฐ๐ฌ $๐๐๐๐ฆ ๐๐ข๐.
ST NOV 08, 2023, 12:13 AM
For the site at Lorong 1 Toa Payoh โ an area that has not seen a new condo launch in seven years โ a joint venture between CDL, Frasers Property and Sekisui House tabled the top bid of $968 million, which translates to a land rate of $1,360 psf ppr.
Despite the siteโs superior attributes, tender participation was muted, with just three bids, given the larger total gross floor area and higher price quantum.
ERA Singapore key executive officer Eugene Lim noted that given higher interest rates and rising economic headwinds, more developers have submitted joint bids to manage development risk.
The top bid land rate is 18 per cent above the second-highest bid at $1,152 psf ppr from Tanglin Land. But the top bid of $1,360 psf ppr is 80 per cent higher than that of the site for Gem Residences, whose tender closed at $755 psf ppr ($345.86 million). Gem was the last condo launched in Toa Payoh, in 2016.
The top bid signals confidence that the future project will be supported by HDB flat upgraders and those seeking a home in the area, Ms Chia Siew Chuin, head of residential research at JLL, said.
Mr Lim noted that in the first three quarters of 2023, Toa Payoh had the highest number of million-dollar HDB flat transactions. โThe median resale price of a 5-room and executive flat is $770,000 and $1.09 million respectively,โ he said.
Ms Tricia Song, CBRE head of research for Singapore and South-east Asia, said the bid prices signal cautious optimism for the private residential market, while undersupplied markets like Toa Payoh could see some future upside.
โDevelopers continue to display low-risk appetites, preferring executive condominium (sites) that are less affected by cooling measures, and sites that are close to transport nodes, good schools and limited competing supply,โ she said.
