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A NEW benchmark could be set for the price of freehold residential land if owners of Ardmore Point are successful in the collective sale of their homes in the prime Ardmore Park location.

Ardmore Point: Analysts reckon its reserve price could be 5 to 10% lower than the $1,432 psf ppr asking price, but even if the property is sold at these levels, it would still topple the current record set by Eng Lok Mansion

They are asking for $220 million, which translates to a unit land price of $1,432 psf of potential gross floor area, including an estimated $22.7 million development charge (DC).

Market watchers suggest the actual reserve price set by the owners could be 5 to 10 per cent lower, at $1,289 to $1,360 psf per plot ratio including DC.

But even at these levels, if they are achieved, Ardmore Point will still topple the current record of $1,218 psf ppr set by Eng Lok Mansion in March this year.

'We're confident that with competition from bidders, we'll be able to exceed Ardmore Point's reserve price,' says CB Richard Ellis executive director Jeremy Lake, whose firm is marketing the collective sale. Based on the asking price of $1,432 psf ppr, the breakeven cost for a new condo project on the Ardmore Point site could work out to around $1,950 psf. Using the likely reserve price, the breakeven would be a lower $1,830 psf. That still leaves a profit margin for its developer going by current pricing expectations for coming launches in the area.

Across the road, Wheelock Properties (Singapore) will launch in October its 118-unit condo, Ardmore II, on the amalgamated Ardmore View and Habitat II site at an average $2,250 psf, Wheelock CEO David Lawrence told BT yesterday.

The development will comprise of two 36-storey towers and all 118 units in the project will be four-bedroom apartments of 2,050 sq ft each.

Ardmore Point has a freehold land area of 60,533 sq ft and market watchers say that whoever bags it is also likely to be eyeing the next door Pin Tjoe Court, which is expected to be put up for tender soon.

The two sites will have a combined land area of over 120,000 sq ft - enough to accommodate a new condo with about 165 units averaging 2,000 sq ft. Both sites are zoned for residential use with a 2.8 plot ratio (ratio of potential maximum gross floor area to land area) and a maximum height of 36 storeys.

Ardmore Point's tender closes on August 8.

The existing 20-storey Ardmore Point has 47 units.

Based on the $220 million asking price, owners stand to receive sums ranging from $2.3 million to $7.9 million per unit.

These are about 120 per cent more than what the units would fetch if sold individually.