Straits Times: Sentosa Cove releases Tanjong Beach condo plot

[Daniel Leong]

Tue Jun 12, 2007 9:23 am (SGT)

June 12, 2007
Sentosa Cove releases Tanjong Beach condo plot
By Fiona Chan, Property Reporter

BEACH lovers may soon be able to live in a condominium right on the
sand.

Sentosa Cove yesterday released a new land plot that it is touting
as Singapore's 'first and only' beachfront condominium site.

It said the 113,797 sq ft plot will be able to house a four-storey
condominium that will open up right onto Tanjong Beach in Sentosa.

Up to 88 luxury units can be built on the Beachfront Collection
site, which is the second last condominium site that Sentosa Cove
will release for tender. The last site, next to the Oceanfront
Collection, will be put up later this year.

But the bids for the site, which will be awarded solely on price,
may not smash previous Sentosa Cove records, say consultants.

CB Richard Ellis Singapore's executive director, Mr Li Hiaw Ho, is
predicting offers of between $160 million and $186 million for the
plot, which can be built up to 149,074 sq ft of gross floor area.

This works out to between $1,100 and $1,250 per sq ft per plot ratio
(psf ppr) - below the $1,361 psf ppr record achieved for the
previous Sentosa Cove plot, the Seaview Collection.

This is because the Beachfront site 'is smaller and has a lower
height limit', said Mr Li. He noted that the Seaview plot could be
built up to eight storeys.

'When you can build higher, the average price you can achieve will
be higher,' he explained.

But he was quick to add that there is the likelihood that the
Beachfront site may fetch a similar or higher price, depending on
the bullishness of bidders.

Mr Lui Seng Fatt, regional director and head of investments at Jones
Lang LaSalle, expects that the maximum price the Beachfront plot can
fetch is $230 million - 10 per cent above the last record on a psf
ppr basis.

'I would say the previous one is already quite a strong benchmark,
and based on that, the selling price of the units would already be
$2,000 per sq ft,' he said.

Expected bidders for the site include Sentosa Cove incumbents Ho Bee
Group, City Developments and Lippo Group. Other local and foreign
developers hoping to get in on the island enclave action may also
try their luck, consultants said.

The Beachfront site is expected to have 'all-round views' because
its surrounding buildings are low-rise, Sentosa Cove said.

Directly in front of the site is the sea, while behind it is the
Tanjong golf course. Tanjong Beach lies on its right, and bungalow
plots line the other side.

Sentosa Cove also revealed that it has achieved a new record price
for its bungalow parcels.

Of the four seafront bungalow plots it put up for sale last month,
one was taken up at $1,472 psf - beating the last high of $1,308 psf
reached last November.

In fact, the four plots fetched an average price of $1,300 psf,
Sentosa Cove said. The successful buyers, mostly locals,
were 'individual parties', it added.

But the prices achieved were below the $1,500 to $2,000 psf
previously predicted by property consultants. When the plots were
first released, consultants were forecasting higher bids due to the
relative shortage of such sites.