Partner Reaps Benefits Following Historic Property Bid
Frasers Centrepoint Limited, developers of North Park Residences, made history in 2013 after submitting a bid for $1.4 billion for the mixed-use property in Yishun. The company, which develops commercial and residential properties, offers condos for sale in prime locations.
The offer, at $1,077 per square foot per plot ratio, was 47 per cent higher than the next bid, which was $750 psf ppr. The developers also paid much more than the seller’s consultants expected. They had anticipated a top bid of $850 psf ppr, and have noted that Frasers Centrepoint paid way above the current land price for the area.
Chief executive of Frasers Centrepoint Commercial, Christopher Tang, said the company’s bid shows its confidence in the suburban mall sector, and is in accordance with its plan to reinforce its position in the Yishun area.
The 920-unit North Park development, which is right next to Northpoint Mall, is listed on the <>new launch condo website. When the first 600 units were released for sale last April, 413 flats were snapped up within days. Most of the buyers were Singaporean, although almost half of them were from outside the Yishun area, which the developers said was a sign of interest in the district.
The 12-storey integrated complex is also close to a bus interchange and a community club. It sits on what is probably one of the last remaining mixed use sites in the Yishun central area, which could explain Frasers Centrepoint’s large bid. According to Tang, it has the potential to become one of the largest integrated developments in Singapore.
Ong Teck Hui, national director of research and consultancy at real estate company Jones Lang LaSalle also noted that this was the most superior location to come onto the market at Yishun. The astronomical top bid for the location suggests a belief that values will increase beyond existing levels in order to warrant it.
Ong believes that the company projected high pedestrian traffic for its commercial element because of its transport connectivity and thought that this would translate to solid investments in the condos for sale. This could have led to more optimistic estimations of capital values and rents in working out the land price.
The location of these prime condos for sale, within walking distance of the Yishun MRT station, could be another reason why the units are selling like hot cakes. It is also well connected by arterial roads and expressways. These factors are sure to draw shoppers, as well as New Launch Condo buyers.
The New Launch Condo site describes how the group would like to integrate the development with the Northpoint Mall, using link bridges and a covered pedestrian walkway. The integration of the two properties is just good business, since the North Park development has condos for sale at the top, and a mall at the bottom of its four buildings. Tang said that this integration will generate operating economies and synergies for both retail malls, and will provide a better mix of occupants and increased offerings for customers.