The 137,632.6 sq ft site at Irwell Bank Road is in prime District 9 and has a maximum gross floor area of 385,379.9 sq ft. The new development is expected to yield about 445 units. The site is close to the upcoming Great World MRT Station on the Thomson-East Coast Line, Great World City shopping mall, and the Orchard Road shopping belt.
This government land sales (GLS) site attracted a total of seven bids. The highest bid of $583.9 million was submitted by CDL Perseus, a subsidiary of City Developments (CDL). This translates to $1,515 psf per plot ratio (ppr). The bid is 4.2% higher than the second highest bid of $560.1 million, which was made jointly by Far East Civil Engineering, Well Oasis, and Sekisui House.
According to Nicholas Mak, head of research and consultancy at ERA Realty, bidders displayed strong confidence in the site’s attributes, despite the fact that there are 16 upcoming new launches in the Core Central Region, with some 2,600 units that could be launched this year.
“The median transacted prices of 99-year leasehold condo in the vicinity range between $2,680 psf and $2,860 psf. With a land rate of $1,515 psf ppr for the Irwell Bank Road site, the developer could earn a reasonable profit if the future condo on this site is launched at the current condo prices,” says Mak.
Huttons Asia real estate professional Kiwi Lim believes there should be pent up demand for Bartley as it has been six years since the last GLS non-landed residential site was sold within the Bartley Road vicinity.
The Lilium and The Gazania, new developments by SingHaYi Group, are 600m away from the GLS site. According to URA data, in 2H2019, their median transacted prices were $2,134 psf and $2,227 psf, respectively.