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project details midtown modern
Tan Quee Lan St, Singapore
Number of Units
558 residential units
Tenure of Land
Guocoland & Hong Leong
(Size quoted are subject to final survey)
Midtown Modern location map
Midtown Modern in the news
6 September 2019 – Yahoo News
SINGAPORE (EDGEPROP) – The Government Land Sales (GLS) site at Tan Quee Lan Street attracted only two bids at the close of the tender on September 5. The top bid of $800.19 million was submitted by a joint venture between GuocoLand and subsidiaries of Hong Leong Holdings, namely Intrepid Investments and Hong Realty. The bid price translated to $1,535 psf per plot ratio (psf ppr). This is $4.2% higher than the second bid of $1,473 psf ppr submitted by City Developments Ltd (CDL) and MCL Land (a subsidiary of Hongkong Land), says Tricia Song, Colliers International head of research for Singapore.
Desmond Sim, CBRE head of research for Southeast Asia sees the bids as “a defensive move on the part of the developers”.
“Both bidders are related parties,” says Nicholas Mak, ERA Realty head of research & consultancy. Both bids for the site on Tan Quee Lan Street are also above the top bid of $1,458 psf ppr for the Middle Road GLS residential site, he points out.
The tender for the GLS site on Middle Road had closed at the end of March, with 10 bids received. Wing Tai Holdings won the site with top bid of $492 million ($1,458 psf ppr).
“We think some developers could have been put off by the hype over the site and expected aggressive bidding for it,” says Colliers’ Song. “In addition, there might be worries about competition from the Middle Road site and the Midtown Bay project.”
The top bid of $1,535 psf ppr for the site on Tan Quee Lan Street is 5.3% higher than the $1,458 psf ppr paid for the Middle Road site. The slight premium could reflect the more favourable location of the former, as it’s adjacent to the Bugis MRT station, says Christine Li, Cushman & Wakefield (C&W) head of research for Singapore and Southeast Asia.
The maximum gross floor area (GFA) for this land parcel was 521,301 sq ft, which could yield about 580 private residential units with commercial space on the first level, estimates Ong Teck Hui, JLL senior director of research & consultancy.
Many developers may have been deterred by the very high capital outlay, adds Ong, as this “increases risks, given the oversupply in the market and an uncertain macroeconomic environment”. As the land price based on the top bid is already $800.2 million, the total development cost of the new project will exceed $1 billion, he adds.
On the other hand, the two bids received reflects the “strong confidence in the Beach Road real estate market” by the developers, says ERA’s Mak. Guocoland is developing the $2.4 billion Guoco Midtown mixed-use development on Beach Road – which is just across the road from Tan Quee Lan Street. CDL is the developer of the South Beach mixed-use development, further down on Beach Road.
The site on Tan Quee Lan Street offers an opportunity to build a signature project on top of the Bugis MRT interchange station for the Downtown and East-West Lines, says Colliers’ Song. She estimates a breakeven price of $2,200 psf for the new project, with a future selling price above $2,400 psf.
SEP 05, 2019 – 23:17 – The Business Times
THREE Government Land Sale (GLS) tenders closed on Thursday, with a 99-year leasehold site at Tan Quee Lan Street securing only two bids while the site at one-north Gateway brought in nine bids. The third 99-year leasehold land parcel at Bernam Street in the Tanjong Pagar area drew four bids.
The top bid for the Tan Quee Lan St site of S$800.19 million (S$1,535 per square foot per plot ratio) came from GuocoLand, Hong Leong Group and Hong Leong Investment Holdings. The second bid of S$768 million (S$1,473 psf ppr) was from Maximus Residential Sg and Maximus Commercial Sg (a tie up between City Developments Limited and MCL Land).
At S$440.9 million (S$1,463 psf ppr), the highest bid for the Bernam St site came from Hao Yuan-linked HY Realty. MCL Land’s Vesta Sg Residences and Vesta Sg Comm put in the second highest bid of S$405.08 million (S$1,344 psf ppr) and Boo Han Holdings’ Laguna Garden and Far East Commercial Trustee slipped in the third highest bid of S$373.33 million (S$1,239 psf ppr).
Meanwhile, the leading bid for the one-north Gateway site of S$155.74 million (S$1,001 psf ppr) came from TID Residential, while Kheng Leong’s Peak Vista submitted the second highest bid of S$153.55 million (S$987 psf ppr) and Laguna Garden had the third highest bid of S$151.78 million (S$976 psf ppr).
Tricia Song, head of research (Singapore) for Colliers International, said: “We believe the lukewarm response to the Tan Quee Lan Street and Bernam Street sites potentially reflects developers’ concerns over the macroeconomic headwinds and weaker economic outlook ahead.”
“Comparing the tender results of the three sites, it appears that the smaller the capital requirement, the higher the number of bidders,” said Nicholas Mak, head of research and consultancy for ERA Realty. “In addition, developers are also drawn to locations where there is very little competition.”
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