A SUBSIDIARY of NTUC Choice Homes Co-operative yesterday placed the top bid of $290.19 million or $460 psf per plot ratio (psf ppr) for a 99-year leasehold private condominium site at Lorong 2/3 Toa Payoh.
The bid was about 23 per cent lower than the $601 psf per plot ratio that property giant Far East Organization paid for a condo site next to Ang Mo Kio Hub in September last year, when the market was still buoyant.That plot is about two MRT stops away from the latest parcel, which is a stone's throw from Braddell MRT station.
The $601 psf ppr for the Ang Mo Kio Avenue 8 site is a record for 99-year suburban condo land, and that tender attracted a whopping 14 bids.
In contrast, yesterday's tender for the Toa Payoh plot drew only four bids. Besides ChoiceHomes Investments Pte Ltd, the other bids came from GuocoLand unit First Capital Holdings ($263 million or $417 psf ppr); Frasers Centrepoint ($319 psf ppr) and a joint bid by Hoi Hup Realty and Sunway Developments for $311 psf ppr.
CB Richard Ellis executive director Li Hiaw Ho estimates the breakeven cost for Choice Homes would be around $800 psf. Secondary market deals at freehold Trellis Towers at Toa Payoh Lorong 1 are between $850 psf and $950 psf, while the older 99-year leasehold Oleander Towers is selling for $700-800 psf.
Analysts reckon Choice Homes may have priced its bid on the assumption of an average selling price of $950-1,000 psf.
Choice Homes CEO Margaret Goh declined to comment on the breakeven cost for the proposed condo, but said that the 43-storey project with about 560 units would target the 'upper end of the mass market, more affluent HDB upgraders' given the attractiveness of the location in Toa Payoh, which offers good investment value.
Ms Goh also disclosed that Choice Homes is in talks with possible joint-venture partners.
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