Seaside Residences Siglap condo site attracts optimistic bids
The top four bids hovering at more than $800 psf pr reflects confident outlook in demand for condo units.
The eight bids that a Siglap Road condominium site attracted is taken to signal that the site may have its potential and that developers must seriously consider replenishing land banks.
The executive director of SLP International, Mr Nicholas Mak, have also expressed that these bids may also be a sign that developers believe that East Coast prices in the middle to upper tier segments could be at their bottom level and will expect to recover late 2016 or in 2017.
The top four bids were more than $800 psf pr and were within a margin of 7 per cent. For JLL national research director Mr Ong Teck Hui, these figures indicate a strong demand for units in the site, which is between the East Coast Parkway and Victoria School.
The top bid of $624.18 million (around $858 psf/pr) was from a consortium formed by Sekisui House, Frasers Centrepoint unit FCL Topaz, and Keong Hong Holdings unit KH Capital.
In a joint statement, the firms announced that the 1.93-hectare plot will have around 800 to 900 units and is expected to launch within the year. Owner occupiers in the mid to upper price segment are the intended target market of this development.
What the site offers
Seaside Residences Siglap Road condominium is a short walk to the upcoming MRT station along the Thomson-East Coast Line, East Coast dining establishments are within convenient reach, and the site has unblocked sea views. The previous time that a site was sold in this area was in 2001.
Based on the winning bid, the selling price for a development on the site is expected to be in the range of $1,400 to $1,500 psf according to Mr Ong. He adds that there would have to be favourable market conditions when the sales launch happens.
The dearth of other residential development sites could also be a factor that led to interest in the project. According to experts, the proximity to Katong and East Coast Park, as well as unblocked sea views definitely did their share of adding to its appeal.
Other new projects are also slated to rise in the area. The site that is now the Cote D’Azur condo was the last on sold in the area on 2001 before this. Frasers Centrepoint Homes developed the Cote D’Azur condo project.
The fact that other high bids were submitted by joint ventures between major industry players is unsurprising for Mr Desmond Sim, the research head for CBRE Singapore and Southeast Asia. There will be close to $1 billion quantum involved when development costs are to be included. Mr Sim adds that the recent addition of a condo site in Tanah Merah could also have took away the attention of smaller players. The Tanah Merah site will be on sale when a developer commits to the minimum bid of $320 million (about $580 psf pr), which is a much lower amount.