Hong Kong developers New World Development and Far East Consortium have teamed up with their Singapore counterpart SC Global Developments to lodge a record S$410 million ($309 million) bid for a residential site near the city-state’s Orchard Road, according to an announcement from the Urban Redevelopment Authority.
The consortium’s mega-offer for the 99-year leasehold property on Cuscaden Road near the city’s best known shopping district comes as Singapore’s residential market has recorded its strongest growth in eight years. The plot lies opposite the Regent Singapore Hotel, close to the Tanglin Mall.
The consortium’s offer trumped four individual bids by Shun Tak Holdings, Bukit Sembawang Estates, Guocoland, Shenzhen-based Logan Property, Far East Organisation and Wing Tai Holdings and Sing Essential, which is believed to be linked to the founders of developer K&K Property Holdings. The site received a second joint bid from from the local branch of mainland builder China Overseas Holdings and CSC Land Group.
Rare Residential Site Near Orchard Road
The high bid works out to S$2,377 per square foot of floor area, breaking the record price per square foot for a government land sale of S$1,733 paid by Frasers Property for a Jiak Kim Street site four months ago, according to a Straits Times account. The top bid exceeded runner up Shun Tak Holdings’ offer of S$379.4 million by nearly eight percent.
“The Cuscaden Road site is rare and the most upscale of the Government Land Sale sites on offer in recent years,” said Tricia Song, Head of Research for Singapore in Colliers International in a statement. “Based on this land price, we estimate breakeven price of S$3,100 per square foot, and a selling price of S$3,500-3,700 per square foot. While bullish, it is probably achievable”
The recording-shattering bid for the site was due to the upturn in the residential market in Singapore, recovery in prices and better market sentiment, Song added.
The 61,596 square foot (5,722 square metre) residential plot can provide a maximum of 172,470 square feet (16,023 square metres) of floor area. The land parcel located south of Cuscaden Road and north of Orchard Road is directly opposite from The Regent hotel and a 10-minute walk from the Orchard MRT station.
Singapore Property Market on the Upswing
The record-shattering bid comes as Singapore’s property market is on an upswing. Private home prices climbed by 3.9 percent in the last quarter, compared to the previous three months and reached their highest levels since the second quarter of 2010, according to Colliers. Diminishing inventory, pent-up demand for housing and a buoyant collective sale market have prompted the property market growth, Colliers added.
Should the joint bid be successful, it would mark a repeat cooperation for New World and Far East Consortium in Singapore. The pair of Hong Kong developers previously worked together to develop the Artra Condo residential project in the city-state, which went on the market in April 2017 and was 60 percent sold as of last month. New World Development took a 30 percent stake in the Artra joint venture, with FEC holding the remaining 70 percent.
Far East Consortium has already been active in Singapore this year, with the Hong Kong-listed developer having purchased the Hollandia residential site on Holland Road last month for S$183.38 million via a collective sale.