Cairnhill Mansions up for collective sale

Cairnhill Mansions, a freehold residential site in District 9, has been released for collective sale with an indicative price of S$361.5 million (around S$2,308 psf) and no development charge (DC).

Its current price tag is lower than the S$443.6 million (S$2,833 psf) guide price set for the property in an earlier collective sale attempt in late 2007.

The property is zoned for residential use with a maximum gross plot ratio of 2.8 and a maximum height of 36 storeys. Successful buyers of the site can build up to its existing gross floor area (GFA) of 156,581 sq ft and gross plot ratio of 3.6.

Analysts said that based on the S$2,308 psf ppr price tag, the breakeven cost for a new development on the site could reach between S$3,000 psf and S$3,100 psf.

“There hasn’t been a super luxury residential site launched for collective sale since the sale of Westwood Apartments. The market has not seen an offering like Cairnhill Mansions for the best part of three years. This tender will also be a test of where land prices are for super luxury sites,” said Jeremy Lake, Executive Director for Investment Properties at CB Richard Ellis (CBRE), which is handling the tender for the site.

Mr. Lake noted that the number of buyers looking for private sites above S$500 million is quite small, whereas a property priced in the S$350 million region will be affordable to more potential buyers.

The 40-year-old Cairnhill Mansions comprises 60 apartment units with an average size of 2,024 sq ft each and a 8,525 sq ft penthouse. Based on the indicative price, owners of the units should bag at least S$5.7 million each while the penthouse owner will pocket S$15.1 million.

CBRE said the tender for Cairnhill Mansions will close on 31 May.

Source : PropertyGuru – 11 Apr 2011

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