The government land sale (GLS) tender for Sims Drive and Middle Road was completed on March 28 2019, and there were five bids for the site at Sims Drive, where Penrose Condo is to be built. The highest bid of $383.5 million ($732 psf per plot ratio) came from a joint venture between Intrepid Investments and City Developments Ltd, both members of Hong Leong Group Singapore.
The 99-year leasehold site has an area of 174,648 square feet and can be transform into a new residential project of 570 units. However, the joint venture will explore a residential development with several 17- or 18-storey blocks comprising about 560 units named Penrose.
According to a Hong Leong Group spokesperson, one of the attractive attributes of this site is its connectivity – by the Kallang-Paya Lebar Expressway and the Pan Island Expressway, a short 15-minute drive to the Central Business District and Orchard Road Shopping Belt and a short travelling distance to Paya Lebar MRT Interchange Station and Paya Lebar Central, located just one stop from the Aljunied MRT station.
Penrose site’s proximity to popular schools like Geylang Methodist School, Canossa Catholic Primary School, Cedar Primary School and Kong Hwa Primary School also make the location attractive to families with yound children, says the spokesperson.
Coming in second at a bid of $655 psf ppr – 12% below the top bid, GuocoLand had bidded even lower than the price it submitted for the 1,024-unit Sims Urban Oasis site of $688 psf ppr back in April 2014.
Given the site’s location in the city fringe and proximity to Aljunied MRT station, Tricia Song, Colliers International head of research for Singapore, is “surprised” by the underwhelming response. She attributes the subdued bid prices to the fact that Penrose is subjected to a larger minimum average unit size of 85 square meters. “Developers may also be assuming some buffer for the five-year ABSD [additional buyer’s stamp duty] time line, given its relatively larger plot size.”
Colliers estimates the selling price to be around $1,400 psf, after factoring the potentially larger units. The top bid is the lowest for a private residential land site on a psf ppr price basis since the Chong Kuo Road site near Mandai was sold for $681 psf ppr in Feb 2018.
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