SINGAPORE (Aug 8): Roxy Pacific’s pricing strategy for its latest planned River Valley freehold condo should follow Martin Modern, says Religare Capital Markets.

Only a 10-min walk away, Guocoland’s luxury project is now selling at $2,000-$2,500 psf and sold 15% out of 450 units when launched on July 22.

In a Monday night filing, Roxy Pacific announced it plans to redevelop a freehold plot in River Valley Road which it has acquired for $110 million, into an apartment block of at least 18 stories with more than 100 units.

The price paid for the 28,798 sqft site opposite the freehold Yong An Park Condo works out to about $1,582 psf ppr, inclusive of an estimated development charge of $17.6 million, says Religare.

“At a land price of $1,582 psf ppr, we estimate the breakeven price of this project could be as high as ~$2,200 psf ppr, and selling price could fetch circa $2,500v psf,” says analyst Tata Goeyardi.

As a comparison, Yong An Park Condo, a much older project with large unit sizes, is asking for $1,400-$1,900 psf in the resale market.

“We believe Roxy’s pricing strategy should follow Martin Modern, however, Guocoland only paid $1,239 psf ppr for Martin Modern’s land,” adds Goeyardi.

As at 2.08pm, shares in Roxy Pacific are up 0.5 cent at 50.5 cents.