Lake Grande Launch . Land Sale Pricing
MCL Land (Vantage) won the Urban Redevelopment Authority (URA) land sale for the Lake Grande launch site with an offer price of $338.1 million. This works out to $630.13 per sq ft (psf) of gross floor area for the land alone.
Chinese developer Hao Yuan’s unit, HY Realty came in second with a $317.9 million bid, just 6.4% lower.
URA announced the results of the land tender on 11 March 2015. A total of nine developers made bids for this 99-year leasehold site at Jurong West Street 41, about 350m from Lakeside MRT station.
The “healthy” number of bidders shows there is still good demand for attractive sites, said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia.
This is especially since the number of condominium sites under the Government Land Sales Programme is being reduced, he noted.
JLL’s national research director, Ong Teck Hui highlighted that the Lake Grande site has good views of Jurong Lake and is near Lakeside MRT station.
He added, “Being the developer of Lakeville, which is adjacent to the subject site, the top bidder (MCL Land) has the advantage of knowing the buying dynamics in that area better than the other bidders.”
Lake Grande Launch · Pricing Analysis
MCL Land’s winning bid for the Lake Grande site can be traced to its confidence in the Jurong property market, given its successful launch of 2 residential projects in this region in the last 2 years.
MCL’s top bid is just 3.2 per cent less than its S$651 psf ppr winning bid in 2013 for the next-door site, which it is developing into Lakeville condominium.
Assuming construction + overhead costs of around $400 PSF, break-even cost for the Lake Grande launch could be approximately $1,050 PSF, and selling price could be around $1,350 PSF.
Mr Ong Teck Hui also cited Lakeville’s estimated average price of $1,325 psf as an indication of the possible pricing for the Lake Grande launch.
Lake Grande Launch · Market Analysis
MCL Land’s CEO, Koh Teck Chuan, said: “We know the pulse of the Jurong area, its buyer profile and their purchasing power. We are very confident of Jurong, which has the strongest growth story of all the regional centres in Singapore. And of course we’re also hoping that the Singapore-Malaysia high-speed rail system terminus will be located in Jurong East – which would give a further boost to the area.” (Note: this has since been confirmed – see the Lake Grande condo HSR report.)
MCL has sold over 80% of the 696 units at Lakeville next door, at an average of $1,325 PSF (and this is after the last and most effective round of cooling measures).
Before that, MCL quickly launched and sold out nearly all its 738 units at the J Gateway launch at Jurong East MRT station, at an average $1,480 PSF, on the evening just before the TDSR cooling measures took effect.
See this link for the news report for the tender results (opens in new window).
LAKE GRANDE LAUNCH · SHOWFLAT VIEWING · VIP PREVIEW
Please register here to receive updates on the Lake Grande launch pricing once available.