Last year, Sturdee Residences- one of iconic new high-end condominium at the door step of City, beat the market expectation with top bit at $787 psf ppr. The 65,785 sq ft parcel draws a strong interest from a lot of reputable developers due to its palatable size and location within a trendy enclave which is "well-served" by F&B and entertainment outlets, Mr Desmond Sim, research head at CBRE Southeast Asia noted.
The Sought After URA Land Sale Site That Attracted 16 Bids!
The 65,784 sq ft parcel off Jalan Besar was expected to get the price in between $138 million and $166 million because of its enviable boons. However, the results stroke all analysists as an odd , when when 16 developers vied for this prime site and the top bid of $181.2 million that was put in by SL Capital- a unit of Sustained Land, has beaten totally market's expectation.
With $787 per sq ft (psf) per plot ratio (ppr) that is 7.3 per cent more than Singland Homes, a unit of Singapore Land ($733 psf ppr), SL Capital won the highest bid for the upcoming Sturdee Residences. It was third bid of $161.9 million - or $703 psf ppr, by Wee Hur Development.
"It reflects the bidders' confidence that, in spite of the current market slowdown, a project at the doorstep of the city, surrounded by abundant amenities, would be in demand, and do well," said Mr Ong Teck Hui, national director of research and consultancy at JLL.
Keen interests among bidders forwards Sturdee Road plot are attributed to a limited supply of new homes in the area recently. The proximity to City Square Mall, Farrer Park MRT station along with resort-style ready-to-live apartment 305 units with a comprehensive heap of top-notch facilities will help Sturdee Residences get a strogn the demand in spite of the current market slowdown.
Coming into life as a "relatively small" project means that "The risk for the new condo would also be lower and the site would be attractive to a wider range of developers," said Mr Nicholas Mak, executive director at SLP International. And the estimated break-even price for Sturdee Residences is expected to be between $1,260 psf and $1,310 psf.
"The site is near Little India and the neighbourhood is becoming "trendier, with chic retail and F&B offerings" and investors are likely to be keen on such a location due to the potential growth in leasing demand," said Mr Ong.
