The owners of Cascadale condominium in Changi are making a second attempt at an en bloc sale at the same reserve price of S$270 million, market agent JLL said on Tuesday.
The 25-year-old freehold property in District 16 was first launched for collective sale in May this year.
If the sale is successful, the owners of the 134-unit property will stand to receive between S$1.4 million and S$4 million each.
The reserve price translates to a land rate of about S$1,065 per square foot per plot ratio (psf ppr), after factoring an estimated development charge (DC) of about S$15.5 million and before any bonus gross floor area, JLL said.
The real estate services firm previously estimated the DC to be higher at S$17 million when it announced the property’s first en bloc attempt in May, which translated to a higher land rate of S$1,071 psf ppr. This was before the Ministry of National Development trimmed the DC rate for non-landed residential use by 0.3 per cent on average, for the period Sept 1, 2019 to Feb 29, 2020.
The condominium sits on a 167,528 square foot (sq ft) freehold site zoned “residential” under the 2014 Master Plan.
With a gross plot ratio of 1.6, the site has an allowable building height of up to 12 storeys, or 45 metres above mean sea level, subject to approval from the authorities.
The 134-unit Cascadale may be redeveloped into a condominium project with up to 292 units with an average size of 85 square metres per apartment, subject to approval and the payment of development charges.
Karamjit Singh, senior consultant at JLL said: “Relatively strong sales achieved by new suburban projects in the second and third quarters of this year point to a resilient market for affordable homes.”
“Some projects have been consistently selling between 50 and 100 units every month, well past their initial launch. The new project on Cascadale’s site fits such a profile nicely, where demand is expected to remain strong.”
The property’s proximity to the airport and a business park also makes the property attractive for redevelopment into serviced residences, subject to approval from the authorities, according to JLL.
It is positioned within Changi City, Singapore’s upcoming aviation development hub. According to the draft 2019 Master Plan, there are plans to transform the Changi East area into an innovative lifestyle and economic cluster, centred on aviation-related business and industries.
“From a private housing supply perspective, there is no new yet-to-be-launched condominium project in District 16 in the pipeline. With the estimated 30,000 professionals working in Changi Business Park and as the plans for the Changi City take form, the demand and values for homes there are expected to rise by 10 per cent to 20 per cent over the next three to five years,” Mr Singh said.
Situated along Upper Changi Road East, Cascadale is about 350 metres from Upper Changi MRT station, two stations from Changi Airport and the Jewel.
It is also a few minutes’ walk to the Singapore University of Technology & Design, Changi City Point, Changi Business Park, and Singapore Expo.
Last month, the Land Transport Authority announced plans to improve connectivity in the Changi region to complement the new Cross Island MRT Line and serve the airport’s Terminal 5. To be completed by 2029, the massive undertaking includes widening and realigning existing roads and expressways, and a new 3.5 kilometre cycling path along Xilin Avenue and Tanah Merah Coast Road.
The tender for Cascadale closes on Nov 6 at 2.30pm.