Seaside Residences Price | Seaside Residences Pricing
The Urban Redevelopment Authority (URA) released this plum Siglap site for sale by public tender on 26 November 2015. The tender closed on 14 January 2016.
It drew bids from 8 developers in a tightly fought contest that included some of the biggest names, like Guocoland, UOL, City Developments, and a Frasers Centrepoint consortium – testimony to the site’s various merits.
The FCL-led consortium of Frasers’ unit FCL Topaz, Sekisui House & KH Capital lodged the highest offer of $624.18 million, roughly $858 per sq ft per plot ratio, for the land.
FCL’s winning bid of SGD$624.2m was just 4% higher than the next highest bid by CDL, and barely 7% above the median price across all 8 bids. In fact, the top 4 bids were all above $800 PSF/PPR. This very tight margin probably reflects the value that developers see in the site, and their bullishness on it.
Analysts point to the site’s attributes, like its unblocked sea views, proximity to East Coast Park and Katong and an upcoming MRT station, and to East Coast eateries and the city.
There are also no new projects of this kind of size in the neighbourhood. The last time a similar site was sold nearby, was in 2001, that became the Cote D’Azur condominium.
Seaside Residences Price Projection · Seaside Residences Pricing Analysis
Given the land cost of $858 per square foot per plot ratio, Mr Nicholas Mak, head of research & consultancy at SLP International Property Consultants, estimates breakeven at S$1,370 per sqf to S$1,480 per sq ft (PSF). Other analysts have estimated a break-even of about $1,320 to $1,350 PSF.
This could work out to an average price of around $1,550 to $1,650 PSF. But expect quite a large difference between pricing of sea-facing units, vs those without sea views.
Note: The published average pricing of a project typically refers to pricing of its mid-floor & mid-size units, like 3 and 4 bedders. Average prices of 1 and 2 bedders would be higher than the average stated PSF of the project.
Seaside Residences Price Range · Market Analysis
Analysts point to Costa del Sol as the most comparable to Seaside Residences, among existing projects, in terms of site attributes and location. In the last 3 months of 2016, resale units there transacted at between $1,196 to $1,268 PSF.
However Costa del Sol completed in 2004, and its site has a balance of 81 years on its lease. If we extrapolate based on a full site lease, and taking into account the cost of renovations to achieve the same “new building” standard, then the price levels would be very similar.
So although the projected pricing is higher than for surrounding older condominiums, sales is likely to be boosted by its combination of unique attributes. Another strong point that will boost sales is that there is no “supply fatigue” in this area. Unlike other locations that has seen a string of sites launched in the last 5 years, this site is a rarity in the vicinity.
See this report for a news article on the sale of this site (opens in new window).
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