Alexandra View Parcel A – Won by Tang Skyline
A total of 10 bidders took part in Alexandra Parcel A tender which closed late 2015. The top bid of $376.88 million, or $851(psf ppr), was put in by Tang Skyline, part of Tang City Holdings or the Tang Group of companies. Located at a key City fringe area of District 3, this site possesses strong attributes specifically its doorstep proximity to Redhill Mrt Station and its commercial component on the first storey. Response, according to experts, appears to be lukewarm. Bidding was conservative amid weak market sentiment. This, however was backed by a considerably strong demand from 10 parties.
District 3 seems to be hotting up with many new launches. The significant level of unsold units in the location would put pressure on developers to price them attractively. The last tender in the area was the Prince Charles Crescent parcel in April last year, which fetched $821 psf ppr. This was subsequently launch by UOL as Principal Garden Condo, a luxurious condo which sold 164 units price at an average of $1628psf.
The site is to include a maximum 21 commercial units, including a supermarket of at least 1,000 sq m. Smaller commercial units have been set at a minimum size of 50 sq m each. At the same time, the site allows serviced apartments, or a mix of both flats and serviced apartments. The commercial units will bring more convenience and amenities to the private residential in the vicinity like Alex Residences.
Estimated breakeven price for a residential development is about $1,300 to $1,350 psf given a land price of $851 psf ppr. After adjusting for profit margin, selling price for the residential units should be expected in the range of $1500 to $1700psf.