Launched for collective sale at a record price of $2.08 billion, Braddell View’s failure to receive any bids at the close of its tender came as no surprise to market analysts. They attributed the project’s failure to attract bidders to its size and the cooling measures rolled out last July.
With an area of 1.14 million sq ft, the 918-unit Braddell View is the city-state’s biggest private residential estate.
Lee Nai Jia, head of research at Knight Frank, said developers are more discerning with their acquisitions now, given that most of them already have adequate landbank.
“Developers are more wary about such a large site. It’s a huge quantum, and they may want to use the funds for other opportunities in the market.”
He noted that Government Land Sales (GLS) sites, like the one on Tan Quee Lan Street, may appeal to developers.
An Edmund Tie & Company report observed that the residential collective sale market has been muted since the government introduced cooling measures in July 2018. In fact, no sales were posted during the first quarter of the year.
“The only residential/residential mixed-use sites sold in Q1 2019 were listed under the GLS Programme – Kampong Java Road and an integrated mixed-use site in Pasir Ris Central,” said the report.
Meanwhile, Braddell View’s marketing agent Colliers International revealed that it has been instructed by the collective sale committee to “enter into a private treaty negotiation for the collective sale of the development, with a view to relaunching the tender if necessary”.
Put up for en bloc sale on 27 March, Braddell View carried a reserve price of $2.08 billion, which works out to a land rate of $1,199 per sq ft per plot ratio, inclusive of the differential premium of about $795.1 million to intensify land use and top up the lease to a fresh 99 years.
The site has a leasehold tenure of 102 years that started from 1 February 1978 and a gross plot ratio of 2.1.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com