Its owners are expecting at least $688m.
Forking out $688 million for a residential site in Bishan appears to be too much for local developers. Shunfu Ville, a 358-unit residential development in the area, has just been re-lauched for sale by its sole marketing agent JLL after failing to find buyers in its first tender.
The prime suburban development was first launched for tender in September last year. Responding to queries from SBR, Yong Choon Fah, National Director, Capital Markets at JLL said that the deal has been re-launched because the two developers which expressed interest in the first tender failed to meet the $688m sale price set by Shunfu Ville’s owners.
“With the supply of sites via the government’s confirmed list slowing down, we do not expect condominium land prices, especially those with unique attributes, to drop very much,” Yong said.
She also highlighted that recent land deals point to a strong underlying medium-term confidence of market recovery, such as the $624.18m sale of a site at Siglap.
“While the market continues to be weighed down by the cooling measures, some positives signs are beginning to emerge. With price moderation working its way alongside continued rise in wages and the stabilisation of HDB flat prices, private housing has become very much affordable. We estimate that it now takes about 5.6 years of income to buy a home, close to the 5.9 years in 2003, which was a recession year. At the peaks of the market in 1996 and 2008, home prices were equivalent to nine to 10 years of income,” Yong said.
The site is just 200 metres from Marymount MRT Station on the Circle Line and about 600 metres from the upcoming Upper Thomson MRT Station on the Thomson-East Coast Line, expected to be completed in 2020.
The tender exercise for Shunfu Ville closes on Thursday, 10 March 2016 at 2.30 pm.
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