Collective sales market healthy despite downturn

Singapore’s en bloc market is heating up, with over S$1.5 billion worth of private properties launched for sale as of yesterday.

After the Dragon Mansion en bloc sale exercise on Monday (S$142m target for Dragon Mansion collective sale), three more sites followed in its path, with the Faber Garden site along Upper Thomson Road being the most expensive at $830 million.

“En bloc land sites require a considerable amount of time and resources to be ready for market. All these en bloc sites released have been work-in-progress, probably six to 12 months ago, way before current uncertain market conditions,” said Charles Chua, Head of Investment Sales and Consultancy at PropNex.

“Some are re-launches, hoping to have another attempt to find a buyer. Thus, despite the unfavourable market conditions, collective owners would still want to proceed with their marketing plans.”

Located at Angklong Lane, Faber Garden currently comprises a total of five blocks housing 233 apartment units, three shop units, townhouses, penthouses and maisonettes. The site has a total area of approximately 544,738 sq ft and a gross floor area (GFA) of up to 958,748 sq ft, inclusive of 10 percent for balcony space.

“The subject site offers a potential developer an opportunity to acquire a large piece of freehold land in a prime residential location,” said Stella Hoh, National Director and Head of Investments at JLL, which is the sole marketing agent for the redevelopment site.

Two other sites — Dunearn Gardens and Newton Lodge — have a total indicative price of approximately S$600 million.

Dunearn Gardens, which is located at Dunearn Road, has been put up for sale with a price tag of between S$550 million and S$561 million, which translates to around S$2,180 psf ppr to S$2,220 psf ppr. It comprises two 20-storey blocks and one 14-storey block, with a total of 114 residential units.

Meanwhile, the nearby Newton Lodge on Newton Road has been put up for sale for the second time, with a reserve price of S$40 million. This freehold site has a total area of 21,409 sq ft and a gross plot ratio of 1.4.

Chua said price per plot ratio, price comparisons from new launches, total land area and the site’s location are some of the key things most developers look for when choosing a site.

“Barring unforeseen circumstances from the external global economy, developers are still very cautious with their land acquisition activities,” he said.

PropNex also said Cavenagh Gardens next to Orchard Road is expected to draw interest from buyers who aim to develop such prime sites. The freehold site measures 130,000 sq ft and boasts an excellent location, as it is connected to Cuppage Road (Orchard) through a pedestrian overhead bridge.

With an expected market price of between S$480 million and S$500 million, PropNex expects that the site will have a “plethora of opportunities to be developed into serviced-apartments or SOHO apartments.”

The tender for the site is expected to close on 1 November. Meanwhile, the collective sale of Faber Garden will close on 22 November, while the tenders for Dunearn Gardens and Newton Lodge will both close on 23 November 2011.

Source : PropertyGuru – 18 Oct 2011

Join The Discussion

Compare listings