Optimism reflected in Prince Charles Crescent

The quality of the bids received at the close of the tender for a 99-year leasehold residential site at Prince Charles Crescent reflects general optimism in the market. The site received a top bid of $516.3 million, or $960.28 per square foot per plot ratio (psf ppr).

The top bid was submitted by a tie-up between Wing Tai's Wingstar Investment, Metro Australia Holdings, and UE E&C's unit Maxdin. It trumped consultants' expectations in July, when the site was triggered, that it could fetch between $760-$850 psf ppr.

This represents a 13 per cent premium over the top end of market expectations, and beat the top bid put up for the Jervois Road parcel in February ($881 psf ppr).

The second highest bid for the plot, which has a site area of about 2.38 hectares, came in at $946.55 psf ppr, in a joint effort by Hong Leong Group's Intrepid Investments, City Developments's unit Verwood Holdings, and Hong Realty.

The site also attracted bids from Keppel Land's Sherwood Development ($980 psf ppr), Wheelock Properties's Pinehill Investments ($890.27 psf ppr), and Bay Front Land ($871.65 psf ppr), whose shareholders comprise World Class Land and Fragrance Group.

The lowest bid was submitted by Plan Achieve, at $805.69 psf ppr.

The Development Control guideline on the maximum allowable number of dwelling units which was announced earlier this month is applicable to this site if the planning permission for the proposed development is received on or after Nov 4, said URA. If the application is submitted before Nov 4, URA may impose requirements where necessary.

Source: Business Times – 21 September 2012