Nine bids were received at the close of the tender for the prime Cuscaden Road residential development site on April 26. The highest bid of $410 million came from a joint venture between niche luxury developer SC Global Developments and two Hong Kong-listed property groups, namely Far East Consortium International and New World Development.
“It has been more than a decade since we saw a GLS site being put up for sale along Orchard Road,” says Simon Cheong, chairman and CEO of SC Global Developments in a statement. “Having created a number of benchmark properties in the Orchard area, we are extremely pleased to have submitted the top bid in collaboration with our renowned partners.”
The Cuscaden Road GLS site received nine bids, with the highest achieving a record price of $2,377 psf ppr (Credit: Samuel Isaac Chua/EdgeProp Singapore)
The $410 million bid for the 61,597 sq ft, 99-year leasehold site worked out to $2,377 psf per plot ratio (psf ppr). Not only did the price smash all records for a residential government land sale (GLS), as well as earlier market expectations of $1,800 to $2,300 psf ppr, it is also 37% higher than the previous record of $1,733 psf ppr for the Jiak Kim Street GLS site, says Tricia Song, Colliers International head of research for Singapore.
Based on the land price, the breakeven for the Cuscaden Road site is estimated to be $3,100 psf, with selling price in the ballpark of $3,500 to $3,700 psf. “While bullish, it is probably achievable,” says Colliers’ Song.
She points to new launches of luxury condos in the neighbourhood such as New Futura at Leonie Hill Road and Le Nouvel Ardmore in Ardmore Park which have achieved average prices of $3,200 to $4,000 psf respectively. Meanwhile, Wallich Residence at Tanjong Pagar Centre, also a 99-year-leasehold luxury development, has seen some units sold at $3,700 psf, with a number of high-floor units having crossed $4,000 psf.
All nine bids received for the Cuscaden Road site were above $2,000 psf ppr. This will give land sales, especially collective sales “a shot in the arm”, notes Nicholas Mak, executive director of ZACD Group.
Park House is on the market at an indicative price of $2,387 psf ppr (Credit: CBRE)
Just three days earlier on April 23, CBRE launched the collective sale of Park House, a 15-storey block located at the junction of Orchard Boulevard and Tomlinson Road. Incidentally, Park House sits adjacent to the Cuscaden Road GLS site.
The indicative price tag on Park House is $308 million, or $2,387 psf ppr. The 46,084 sq ft freehold site has a plot ratio of 2.8. As the baseline plot ratio is equivalent to 3.66, no development charge is payable. If a 10% bonus balcony area is taken into consideration, the land rate will translate to $2,170 psf ppr, according to CBRE.
Meanwhile, owners at Orchard Bel-Air, a 71-unit, 34-year-old condominium block located across the road are also attempting a collective sale, with Savills Singapore as their appointed property consultant. Orchard Bel-Air is located adjacent to the Orchard Boulevard MRT station, where construction is currently underway.