Cuscaden road prime residential site commands record GLS land price
Singapore, 26 April 2018 – The Urban Redevelopment Authority (URA) closed the tenders for three residential sites at Cuscaden Road, Mattar Road and Silat Avenue today.
The land parcel at Cuscaden Road has a site area of 5,722.5 sqm (61,596 sq ft) that can yield a GFA of 16,023 sqm (172,470 sq ft).
The top bid at nearly $410 million, reflecting $2,377 psf/pr sets a new land price record for GLS residential sites, driven by keen demand for high-end prime residential sites. While demand for en bloc sites started in the suburban and fringe locations, it strengthened increasingly towards prime locations and coinciding with the availability of the Cuscaden parcel, resulted in the competitive bidding and robust top bid in today's tender.
We can expect the development of a luxury project on the subject site that will appeal to high-end buyers after a prestigious address and all the trappings of being near to Orchard Road and its attractions.
Located at Silat Avenue in Kampong Bahru, the site is substantial, with an area of 22,851.6 sqm (245,972 sq ft) that can generate 84,551 sqm (910,099 sq ft) of GFA. The number of dwelling units is capped at 1,125 units while a maximum commercial GFA of 1,300 sqm (13,993 sq ft) is allowed. 5 existing conserved buildings on the site are to be retained and restored.
The tender participation with only one bidder and the top bid of $1,138 psf/pr were below expectations. It could be attributed to the huge investment outlay with an absolute land price of $1.0353 billion and constraints posed by the presence of conserved buildings.
The 6,230.2 sqm (67,061 sq ft) site at Mattar Road can be developed with 18,691 sqm (201,188 sq ft) of GFA.
At $223.019 million, reflecting $1,109 psf/pr, the top bid for the Mattar Road site was higher than expected. The narrow margin of 5.5% among the top 5 bidders shows how keen the competition was among them. The main attraction of the site is its proximity to Mattar MRT station on the Downtown line which provides easy connection to the city and other areas.
The keen bidding for the Cuscaden Road and Mattar Road land parcels tells us that demand for attractive residential sites is still buoyant. With such keen demand for sites, the en bloc market is likely to stay firm as it continues to be the main source of residential land supply over GLS.
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