The Bernam Street site is a rare fresh site in the mostly built-up Shenton Way CBD and could ride on the future Greater Southern Waterfront development and CBD Incentive Scheme unveiled in the URA Draft Master Plan 2019 recently.
Indeed, the maximum gross floor area and in turn the estimated number of units for this site have increased 30% compared to the amount stated earlier in the 1H2019 GLS Programme, due to the increased development intensity allowed under the CBD Incentive Scheme announced in March 2019. The implied Gross Plot Ratio has increased to 7.28x, compared to the 5.6x in the current Master Plan.
Realty Centre, the freehold 11,000 sq ft site next to the Bernam Street site, was sold in a collective sale in April for SGD148 million. We estimated this would translate into SGD1,922 psf per plot ratio (ppr), before any development charge, assuming it receives a 25% increase in plot ratio if it converts into a mixed residential and commercial property, which the buyer - The Place Holdings - reportedly intended to do.
We observed that 99-year leasehold residential projects in this area, such as Altez, Skysuites@Anson and Icon transacted at SGD1,700-2,500 psf on average in the past 12 months, depending on age and unit size. We expect this Bernam Street site, with a site area of 3,846 sq m or 41,400 sq ft, to fetch a top bid of SGD535 million or SGD1,780 psf ppr. Developers could look to price the new project at an average of SGD2,600-2,700 psf.