The price tag on luxury residences is expected to hit a new high as a site for Singapore’s only beachfront condominium is launched at Sentosa Cove today.
The site, Beachfront Collection, is perched on Sentosa Cove’s southern-most corner, offering an unblocked view of the Southern Islands and Tanjong Golf Course.
A four-storey condominium offering up to a maximum of 88 luxury apartments is expected to be built on the 10,572 sq m site.
It has a maximum permissible gross floor area of 13,849.32 sq m. The tender, to be based only on price, will close on July 24, with property analysts expecting keen bidding.
Mr Donald Han, managing director of Cushman & Wakefield Singapore, estimates the buying price to be between $1,400 and $1,500 per square foot (psf), surpassing the $1,361 psf set in March for the Seaview Collection, which was awarded to Ho Bee Developments and IOI Properties.
“Low-rise apartments have their own charm; you don’t need high-rise apartments, given that it’s right on the beachfront, so there could be a resort feel to the place,” said Mr Han.
Savills Singapore’s director of investment sales, Mr Steven Ming, puts the price at between $1,400 and $1,600 psf. “The luxury-end market has gotten firmer since the last transaction in March,” he noted.
Mr Colin Tan, head of consultancy and research at Chesterton International, concurred, saying that he “cannot see anything other than keen contest” for the site, particularly with the confidence and optimism that developers have currently.
Mr Han, expecting unprecedented bids, cites Ho Bee Investment, City Developments Limited and Lippo Group as the top three contenders. Other possible interested parties include Frasers Centrepoint, Bukit Sembawang View and CapitaLand.
Executive director of CBRE Research, Mr Li Hiaw Ho, however, is less upbeat about the land price of Beachfront Collection, putting it at beween $1,100 and $1,250 psf, as it is a smaller site and has a lower plot than Seaview Collection.
For analysts such as Mr Han, however, there are “no comparable” sites to the Beachfront Collection.
Indeed, Sentosa Properties’ group director Gurjit Singh proclaims the site to be a case of “never before, never again”.
Source: Today, 12 June 2007