Conservation bungalow site along Marine Parade Rd set reserve price of up to $110mn

This works out to be $1,164-$1,262 psf ppr including an estimated DC of $19.5 million based on a potential GFA of 102,648 sf.

According to DBS Vickers, the GFA is based on a 2.1 plot ratio plus a bonus GFA of 3,108 sf equivalent to GFA of the conserved bungalow.

It is estimated that the site could accommodate 98 condominiums of an average size of 1,000 sf each with the conservation bungalow as the clubhouse.

The asking price is slightly higher than what CapitaLand and Far East Organization had paid recently to buy Marine Point and Amber Glades enbloc sites at $1,056- $1,066 psf ppr. DBS Vickers thinks that the price, though slightly high, could still attract relatively good responses from developers due to its excellent location.

In addition, the conservation bungalow could also be an added appeal to the end product.

Based on $1,164-$1,262 psf of land cost, DBS Vickers estimates breakeven cost to be around $1600-1700 psf of saleable area and selling price would likely have to be in the $1,800-$2,000 psf range, assuming a 10-15% development margin. This is in line with the recent transactions at The Cape, which falls between $1,900-$2100 psf but higher than prices at the 3-year old condominium, The Sea View, which changed hands at $1,300-1,600psf.