Brokers' take

Singapore Property DBS Group Research, June 14

SINGAPORE Press Holdings and Kajima Development through their subsidiaries, Elara 1 Pte Ltd And Callisto 1 Pte Ltd, has emerged as the top bidder for a leasehold mixed development at Upper Serangoon Road, Woodleigh. According to the tender details, close to 825 residential units can be built on the site.

Assuming a valuation of S$3,000 psf (per sq ft) for the retail component (150,000 sq ft), we estimate that the break-even for the residential units will be close to S$1,500 psf and potential launch prices to be north of S$1,650 psf, assuming a 10 per cent margin, setting a new record for the sub-market.