Riverside Piazza near Clarke Quay for en bloc sale with S$198m reserve price

The Business Times - Nov 4
The Riverside Piazza near Clarke Quay will be put up for collective sale via tender at a reserve price of S$198 million on Nov 5, marketing agent Colliers International announced on Monday.

The Riverside Piazza comprises 40 apartments and 24 commercial shops, with sizes ranging from 58 sq m to 333 sq m (624 sq ft to 3,584 sq ft). Depending on the size of their unit, each owner could stand to receive between S$2.23 million and S$9.47 million from the successful sale of the development.

Tang Wei Leng, Managing Director:
Prime development sites do not come up very often, especially near the Singapore River which has played an important role as a lifeline for generations of people in the country’s storied past. This site presents a unique opportunity to create a contemporary riverfront hotel in an area thriving with activity, buzzing nightlife, and rich history. We believe the excellent site attributes should appeal to developers who are looking to tap growing opportunities in the hospitality real estate sector. Read the news release. 


URA launches tender for Irwell Bank Road residential site

The Business Times - Oct 31
The Urban Redevelopment Authority (URA) has launched a residential site at Irwell Bank Road for sale by public tender, it said on Thursday.

The site spans an area of 12,789 square metres (sq m) with a gross floor area of 35,809 sq m. The 99-year leasehold site can yield about 445 residential units, with a maximum building height of 36 storeys. 

Tricia Song, Head of Research:
This site - which we believe is the most appealing one on the GLS slate for the second half of 2019 - will attract developers who are keen to add a rare, sizable residential site in the prime District 9 to their development pipeline. However, given the relatively large quantum required, we expect the tender for Irwell Bank Road site to be cautious, attracting 4 to 6 bids, in line with the average 5 bids for residential sites costing over SGD300 million since the cooling measures were implemented in July 2018.

The top bid could come in at SGD650-680 million (or SGD 1,700-1,770 per square foot per plot ratio), relatively similar to the land rate of SGD1,732.55 psf ppr for the Jiak Kim Street site (Riviere), which was awarded to Frasers Centrepoint in December 2017.   

Apart from its prime location, the site - which can yield 445 residential units - has a regular shape and is near the Orchard Road shopping belt. In addition, it is also near the upcoming Great World City MRT station and Great World City Mall.

In assessing the site, we believe developers will likely take a cue from the performance of 455-unit Riviere, about 600 metres away, which has sold 45 units at a median price of SGD2,850 psf since it was launched in May 2019.  Martin Modern, another GLS site, has sold 353 units or 78% of its total 450 units since its launch in July 2017. Prices at Martin Modern have risen steadily from SGD2,152 psf at launch to over SGD2,600 psf currently. Read our analysis.


216 units at Sengkang Grand Residences sold at launch

The Business Times - Nov 4 
Listed CapitaLand and City Developments, joint developers of Sengkang Grand Residences, sold 216 of the 280 units released for sale at the project's weekend launch at an average selling price of around S$1,700 per square foot (psf).

The tally, as at 6pm on Sunday, showed about 93 per cent of the buyers were Singaporeans, while the remaining 7 per cent were permanent residents and foreigners mainly from China, Malaysia, India and the Philippines. Sales began on Saturday, a week after its sales gallery opened for viewing.

Tricia Song, Head of Research:
The takeup at Sengkang Grand Residences was surprisingly good, at 216 units or 32% of the total 680 units, despite the benchmark price point of SGD1,700 psf in District 19 for a 99-year leasehold project. This is also in stark contrast to the performance at 564-unit Midwood at Hillview which was launched a week earlier and reportedly sold 24 units at an average of about SGD1,650 psf. We believe the good demand at Sengkang Grand Residences could be due to its being the first integrated community and lifestyle hub in the north-east region. It appears buyers are willing to award a 30% premium for superior convenience and amenities as pure residential projects nearby such as The Quartz (completed in 2009) and Jewel (2016) transacted at about SGD1,000 – 1,300 psf in 2019-to-date.