Asking prices for land in the prime districts continued their dizzying climb, as Elizabeth Heights, a freehold development in the Cairnhill area, was released for sale yesterday - with a price tag of as high as $2,100 per square foot per plot ratio (psf ppr).

The price topped that set by the 99-year leasehold Grangeford Apartments earlier this week. Grangeford comes with a whopping $660 million ‘guide price’ - more than double the $280 million bandied about in October last year. This works out to $2,016 psf ppr, including an estimated $97.8 million any developer will have to pay the state to restore the site’s remaining 66-year lease to 99 years.

Grangeford’s asking price of $2,016 psf ppr was the highest until Elizabeth Heights came along.

‘We expect to receive offers in the region of $570 million to $600 million, reflecting a land rate of about $2,000 to $2,100 psf ppr,’ said Karamjit Singh, managing director of Credo Real Estate, which is seeking expressions of interest for the site.

Elizabeth Heights has a land area of 88,600 sq ft and comes with a 2.8 plot ratio, but any buyer may redevelop the site up to its existing gross floor area of 285,000 sq ft, said Credo. No development charges should be payable, the property firm added.

An estimated 136 units with an average size of 2,000 sq ft each can be built on the site.

Credo executive director Yong Choon Fah said that the asking price was not too high, and that it was comparable with that asked by Grangeford, which is used as a benchmark.

In addition, Elizabeth Heights is unique in that it falls within a small stretch of properties along Cairnhill Road on which a 36-storey development may be allowed, Mr Singh said. He added that most of the other sites in Cairnhill and Scotts Road have a height control of up to 20 storeys.

‘Home buyers are willing to pay a significant premium for luxury homes on high floors with good views,’ said Mr Singh. ‘As the new development on this site may overlook its surroundings with its 36-storey potential, we believe this advantage would help support a land rate of at least $2,000 psf ppr.’

At present, Elizabeth Heights comprises 84 maisonettes and six penthouses. Some 71.2 per cent of the owners by share value have consented to the collective sale. A minimum of 80 per cent is needed before any sale can go through.

If the price of $600 million is achieved, maisonette owners will each receive $6.2-6.4 million, while penthouse owners will get at least $11.1 million each. These prices are about 40-50 per cent above market values, said Credo.

The expressions of interest exercise will close on May 25 at 2.30 pm.

Source: The Business Times, 26 April 2007