Siglap Shopping Centre relaunched for collective sale at same $120 million price

The guide price for the 39,635 sq ft land parcel is at $120 million or $1,235 per sq ft per plot ratio.
The guide price for the 39,635 sq ft land parcel is at $120 million or $1,235 per sq ft per plot ratio. PHOTO: ORANGETEE ADVISORY

SINGAPORE (THE BUSINESS TIMES) - Siglap Shopping Centre has been relaunched for collective sale in view of recent trends of aggressive bidding for government land sites, real estate consultancy OrangeTee Advisory said on Wednesday (Aug 4).

As with its previous effort in late October last year at putting the freehold site up for sale, the guide price for the 39,635 sq ft land parcel remains at $120 million - translating to $1,235 per sq ft per plot ratio (psf ppr). This is after factoring in a 7 per cent bonus residential gross floor area for private outdoor spaces.

A spokesman for OrangeTee Advisory told The Business Times that bids submitted in the previous tender round did not meet the set reserve price, and so were not followed through.

Information was not available regarding how many bids were received and from whom at the time, as well as the range of prices that were offered, however.

The consultancy believes, nonetheless, that the Government's handling of the ongoing Covid-19 pandemic and Singapore's high vaccination rate have boosted developer and buyer confidence in real estate acquisition - evidenced, it said, by robust home sales at recent property launches.

The consultancy observed that recent transactions involving government land sites at Lentor Central which went for $1,204 psf ppr last month and Northumberland Road that went for $1,129 psf ppr in April were both 99-year leasehold land parcels.

The Lentor Central land parcel went for 30 per cent higher than the purchase price of $930 psf ppr for a site in Tanah Merah Kechil Link, which closed last September.

"Going by how bid prices for similarly designated leasehold government land sites have risen quite substantially, the reserve price for this freehold plot in prime District 15 is now looking relatively attractive," said OrangeTee Advisory executive director Edmund Lee.

Completed in the 1980s, the three-storey development comprises eight residential units and eight ground-floor commercial units with an adjoining plot of state land of about 5,005 sq ft that may be amalgamated with the site to form a larger plot of about 44,640 sq ft, subject to approval from the relevant authorities.

The tender for the East Coast Road site will open on Thursday and close at 3pm on Sept 1.