What's so great about Jervois Road?

Residential site racked up 17 bids for an unusually strong showing amid a precarious buyer market.

Its location in the prestigious district 10 address still commanded a premium, according to CBRE, and it helped that it is only a low- rise development that posed less risk.

Here's more from CBRE:

The subject site at Jervois Road is located in within the prime residential district 10, near the Chatsworth Park Good Class Bungalow Area. It is surrounded by private developments such as Jervois Regency, Jervois Lodge, Jervois Gardens and Jervois Lodge. The High Commission of Malaysia is also close by. Amenities are available at Valley Point Shopping Centre and along River Valley Road.

The future development will be a low-rise development of five storeys, comprising 150 to 200 apartments.

The site attracted a very good response of 17 bids because of its strong location attributes and the lower quantum involved because it is a low-rise development. The last new development along Jervois Road was One Jervois which was completed in 2009.

The top bid of $118.9 million or $881 psf/plot ratio will translate to a breakeven cost of $1,400 psf to $1,450 psf. URA sales data for October-December 2011 showed that a small- format unit in Nathan Residences (under construction) was sold at $1,655 psf while units in One Jervois and Sheares Ville (completed in 2003) were sold between $1,450 psf and $1,560 psf. These three projects have a freehold tenure.

We expect that units on the new 99-year leasehold site should be able to command a premium because of its rarity, and therefore, may be able to fetch $1,600 psf to $1,800 psf when launched.