BT: Ang Mo Kio site may fetch over $500 psf - 31 Jul 07
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Dan @ 94 777 977
Aug 2, 2007, 11:10:24 AM8/2/07
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July 31, 2007
Ang Mo Kio site may fetch over $500 psf
Bids for 99-year leasehold plot likely to be 65% higher than minimum
offer By KALPANA RASHIWALA
A PLUM 99-year leasehold condo site opposite Ang Mo Kio MRT Station
could fetch bids of over $500 per square foot (psf) of potential
gross floor area, say market watchers. This is at least 65 per cent
higher than the minimum offer price of $302 psf of potential gross
floor area received by Housing & Development Board for the reserve
list site.
The plot, right next to the AMK Hub, can be developed into a new
condo with 337,408 sq ft maximum gross floor area, enough for a condo
with about 280 to 300 apartments averaging 1,200 sq ft, according to
Knight Frank director Nicholas Mak.
He expects the site to fetch top bids of about $480 to $530 psf per
plot ratio in the current bullish market, but given its prime
suburban location, is not discounting bids of $550 psf ppr or even
higher.
'This is one of the best residential sites in the second half 2007
Government Land Sales Programme. On a scale of 1 to 10, I would rate
it 8 or 9,' Mr Mak says.
Assuming the site sells for $510 psf ppr, the breakeven cost for a
new condo works out to around $800 to $820 psf. If the developer
wants a minimum 10 per cent profit margin, he would be eyeing an
average selling price of around $900 psf.
The developer can count on a huge pool of upgraders given that Ang Mo
Kio is a mature HDB estate, Mr Mak reckons.
CB Richard Ellis executive director Li Hiaw Ho, who is predicting the
winning bid to be above $400 psf ppr, and a selling price of around
$800-900 psf for the new condo units that will be built on the
site. 'This should be achievable if the residential market continues
its current performance, by the time the project is ready for launch
in mid-2008,' he added.
CBRE said that in the June/July period, units at Grandeur 8 condo a
short distance away changed hands at $570 to $620 psf in the
secondary market, while over at Bishan 8 condo, apartments have
changed hands at around $800 psf.!
Ang Mo Kio site may fetch over $500 psf
Bids for 99-year leasehold plot likely to be 65% higher than minimum
offer By KALPANA RASHIWALA
A PLUM 99-year leasehold condo site opposite Ang Mo Kio MRT Station
could fetch bids of over $500 per square foot (psf) of potential
gross floor area, say market watchers. This is at least 65 per cent
higher than the minimum offer price of $302 psf of potential gross
floor area received by Housing & Development Board for the reserve
list site.
The plot, right next to the AMK Hub, can be developed into a new
condo with 337,408 sq ft maximum gross floor area, enough for a condo
with about 280 to 300 apartments averaging 1,200 sq ft, according to
Knight Frank director Nicholas Mak.
He expects the site to fetch top bids of about $480 to $530 psf per
plot ratio in the current bullish market, but given its prime
suburban location, is not discounting bids of $550 psf ppr or even
higher.
'This is one of the best residential sites in the second half 2007
Government Land Sales Programme. On a scale of 1 to 10, I would rate
it 8 or 9,' Mr Mak says.
Assuming the site sells for $510 psf ppr, the breakeven cost for a
new condo works out to around $800 to $820 psf. If the developer
wants a minimum 10 per cent profit margin, he would be eyeing an
average selling price of around $900 psf.
The developer can count on a huge pool of upgraders given that Ang Mo
Kio is a mature HDB estate, Mr Mak reckons.
CB Richard Ellis executive director Li Hiaw Ho, who is predicting the
winning bid to be above $400 psf ppr, and a selling price of around
$800-900 psf for the new condo units that will be built on the
site. 'This should be achievable if the residential market continues
its current performance, by the time the project is ready for launch
in mid-2008,' he added.
CBRE said that in the June/July period, units at Grandeur 8 condo a
short distance away changed hands at $570 to $620 psf in the
secondary market, while over at Bishan 8 condo, apartments have
changed hands at around $800 psf.!
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