SC Global, Far East Consortium and New World Development sets benchmark for Cuscaden Road site
There was a total of nine bids that were received at the close of the tender for the Cuscaden Road residential development site this April 26. The highest bid value of $410 million came from a joint venture with niche luxury developer SC Global Developments and 2 Hong Kong listed property group, New World Development and Far East Consortium International.
This $410 million bid for the area of 61,597 sq ft, 99-year leasehold site worked out at the rate of $2,377 psf per plot ratio (psf ppr). It’s just not did the price which smashed all records of residential government land sale (GLS), also broke the earlier market expectation of value between $1,800 and $2,300 psf ppr. It is 37 percent greater than the past record of $1,733 psf ppr for Jiak Kim Street GLS site, told Tricia Song, Colliers International head of research for Singapore.
Based upon the land price, the break-even for this Cuscaden Road site is calculated to be $3,100 psf, with selling price between $3,500 and $3,700 psf.
All the nine bids received for this Cuscaden Road site were greater than $2,000 psf ppr. This would give land sales, in particular collective sales “a shot in the arm”, says Nicholas Mak, the executive director of ZACD Group.