GuocoLand overpaid a Martin Place site?

The residential site that GuocoLand secured at a state tender along Martin Place has key attributes that are a strong factor for any developer who’s planning a condo project.

But the winning bid of 595.1 million Singaporean dollars for a 1.6-hectare site was said to be overpaid. It translates to 1,239 Singaporean dollars psf ppr (per square foot per plot ratio); the highest unit land price for a residential site sold at a public tender since 2009.

The site can hold up to 450 residential units. It is situated at the corner of Martin Place and River Valley Close in District 9.

The site has a strategic location as it will only be a short walk to the future Great World MRT Station at the Thomson East Coast Line; one stop from the Orchard Station and five stops from Marina Bay Station.

However, this site will appeal to families that are seeking for schools for their children as it isn’t far from the popular River Valley Primary School. A part of this site has a 20-storey height restriction, while the rest of it can build up to 30-storey high.

They based those estimates from the sale evidence this year at Martin Place Residences and the Rivergate; the two freehold developments nearby, and also from the 99-year leasehold project at the Orchard Road shopping belt, Cairnhill Nine, that was sold last March faster than they expected.

URA (Urban Redevelopment Authority) specified a maximum 450 units for this site which will make the average unit size in GuocoLand’s project will be 1,067 square feet. This is smaller than the average unit sizes that have changed hands from both Martin Place Residences and Rivergate this year.