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Sep 19, 2007

'Iconic' condo site at Sentosa Cove up for sale

By Joyce Teo, Property Correspondent

THE best of the condominium sites in the wildly-popular gated residential enclave of Sentosa Cove was left till last.

That site went on sale yesterday, at a reserve price of $964 million, or $1,600 per sq ft per plot ratio - the price psf of the potential floor space.

But property consultants are already expecting bids for the 99-year leasehold site to come in above $2,000 psf per plot ratio, pushing the overall price well over $1 billion.

That would put the eventual selling price of completed condo units there at a hefty $3,200 to $3,800 psf - a level that some Orchard Road homes are going for.

'This is an iconic site, the equivalent of the Orchard Turn site for Sentosa Cove,' said Mr Ku Swee Yong of property consultancy Savills Singapore.

This 231,677 sq ft site, called The Pinnacle Collection, is one of two condo land parcels that flank the entrance of the marina leading into Sentosa Cove. It is set to be the tallest development in the enclave, with a height limit of 20 storeys.

Until now, the tallest has been the 15-storey The Oceanfront@Sentosa Cove, which sits on the other condo parcel flanking the marina entrance.

The newest site also allows the highest density development in Sentosa Cove, with a plot ratio of 2.6. That allows for a gross floor area of nearly 602,360 sq ft. Up to 357 luxury apartments can be built at the new site, said Sentosa Cove in a statement.

Despite the reserve price, property analysts feel certain this site will beat the price paid by SC Global in late July for another site at the enclave, which set a record of $1,799 psf per plot ratio.

Property consultancy CB Richard Ellis anticipates that the new site will be the 'most coveted' parcel of all the Sentosa Cove plots.

'The interest level in the site could be a measure of developers' confidence in the high-end residential market, and their reaction to the stock market turbulence,' said Mr Nicholas Mak of property consultancy Knight Frank.

The successful bidder is likely to produce an inspiring design with high-end finishing touches, they said.

They expect the break-even cost for this residential project to be between $2,800 psf to $3,000 psf based on a land price of $2,000 psf per plot ratio. This would translate to an estimated selling price of about $3,200 psf to $3,500 psf for the homes, they said.

Mr Ku expects end selling prices at $3,400 to $3,800 psf.

The tender, which closes Dec 12, will be awarded based on price as well as design.

joyceteo@sph.com.sg