Slim Barracks Rise Two Land Parcels Fetch 10 Bids Each

Tender Results:

credits: ura

Slim Barracks Rise Parcel A:

Parcel A of over 7,957 square metres or 85,648.4 square feet generated a top bid of $320.1 million from EL Development, equating to $1,245.7 per square foot per plot ratio (psf ppr). This surpassed the expectations of most property consultants.

A bid by one of the Kingsford Development owners, Gao Xiuhua, for S$316 million or $1,230.2 psf ppr was 1.27 percent lower. During the year 2017, the property developer Kingsford won the contract to buy en bloc the Normanton Park site for $830.1 million. Normanton Park with a total of 1,862 units was launched in January this year (2021). To date, it is 68% sold with 1276 units off the shelf.

Both its 2012 and 2015 projects are already fully sold and completed, namely Kingsford Hillview Peak, a 512-unit project, and Kingsford Waterbay, a 1,165-unit project.

A similar situation applies to EL Development, which is fully booked on all its projects except for its high-end project, Pullman Residence Newton at Dunearn Road, which consists of a single tower with 340 units. To date, the project has sold approximately 30% since its launch in November 2019. The developer commented that the project will be relaunched in the middle of 2022 once travel restrictions are lifted.

Slim Barracks Rise Parcel B:

On the other hand, Gao Xiuhua of Kingsford Development got a top bid of $162.4 million or $1,210.1 psf ppr on the 5,936.6 sq m or 63,901 sq ft parcel B.

Background Information:

Both of these sites were on the approved list for the first half of 2021 of the government land sales programme (GLS). These properties were added as part of JTC Corporation’s move to fill more residences in the one-north estate, the URA said.

Parcel A vs Parcel B:

Because of their small size compared to a lot of other GLS sites, analysts expected these 2 land plots would attract a high number of bids, of which they did.

In comparison to Parcel B, Parcel A is considered more advantageous due to its regular plot size, as well as its proximity to the Buona Vista MRT station.

Slim Barracks Rise 2019 Tender For A Single Land Plot:

JLL’s senior director of research and consultancy Ong Teck Hui states that the Parcel A and Parcel B pair beat a residential site launched via GLS at Slim Barracks Rise two years earlier in 2019, which attracted 9 bidders. TID Residential (joint venture between Mitsui Fudosan Co and Hong Leong Holdings) threw in the top bid at $155.7 million equivalent to $1001 psf ppr.

The site is One-North Eden new condo launch. It is selling at an average price of $1989 psf now. On its preview launch over the weekend of 24th April 2021, a total of 85% was sold. The tremendously good sale is likely due to the fact that there has not been any condo Singapore launches in the One North area since 2007. The last two developments launched in 2007 were One Rochester Residences and One North Residences.

Optimism For Parcel A and Parcel B:

According to Edmund Tie’s head of research and consulting, residential developments in One North are trending positively based on the large number of bids and optimistic bid prices received for both sites.

Slim Barracks Rise could sell for over $2,100 psf when launched, according to Tricia Song, head of research at CBRE for Southeast Asia.

credits: ura

credits: ura

Parcel A with a bigger site area at 7,957 sqm can yield approximately 265 residential units while Parcel B comes with a smaller plot size of 5,937 sqm and is able to yield around 140 housing units.

Sources:
1) https://www.straitstimes.com/business/property/two-land-parcels-at-one-norths-slim-barracks-rise-fetch-10-bids-each
2) https://www.businesstimes.com.sg/real-estate/two-sites-at-one-norths-slim-barracks-rise-beat-forecasts-with-10-bids-each