Freehold condo development Amber Park has been sold en bloc to CDL subsidiary Cityzens Development and Hong Realty for S$906.7 million, reflecting a land rate of $1,515 psf per plot ratio.
This is fourth time lucky for the 200-unit development near Marine Parade.
Each owner is expected to receive between S$4.3 million and S$8.3 million in gross sale proceeds.
The 213,670 sq ft residential site may be redeveloped to accommodate a high-rise apartment development of around 24 to 26 storeys, depending on the technical height controls, its sole marketing agent JLL said.
The tender attracted eight submissions, and the sale holds the record as Singapore’s largest freehold collective sale by dollar value.
“There are not many sites of similar size that are available for redevelopment in the Amber Road location, as most of the larger projects have been sold en bloc and redeveloped over the years. Amber Park could possibly be one of the last collective sale sites with a land area above 200,000 sq ft in this precinct,” he added.
Analysts found CDL’s offer price to be bullish, at an 18 per cent premium over its reserve price of S$768 million.
They noted that CDL’s purchase price would translate to a breakeven price of about S$2,200 psf and selling prices of S$2,600 to S$2,700 psf.
This is above transaction prices of around S$1,900 to S$2,000 psf at the nearby Amber Skye and Marine Blue.
OCBC Investment Research senior investment analyst Eli Lee said: “CDL’s purchase was aggressive, but made sense, in our view. Given recovering home prices and a competitive landbanking environment, choice sites don’t come easy.”