Coronation Grove up for sale

Coronation Grove in District 10 is going back on the collective sale market with a lower indicative price.

The owners now say they will consider offers over S$81 million.

This is lower than the earlier indicative asking price of between S$86 million and S$90 million.

Marketing agents Credo Real Estate said after the last unsuccessful tender exercise in March 2011, the owners agreed to lower their price expectations so that it is “more reflective of the current market”.

At S$81 million, the land price works out to be S$1,306 per square foot.

Ms Yong Choon Fah, executive director of Credo Real Estate, said: “The owners feel that they could hope to receive competitive bids this time round in view of the lower price expectation and with the market for landed houses remaining very strong.”

Under the 2008 Master Plan, the site, although currently housing a condominium development, is slated for three-storey semi-detached houses upon redevelopment.

The developer of the site could choose to build a combination of conventional semi-detached and detached houses, as well as strata semi-detached houses and strata bungalows, Ms Yong said.

The site can potentially yield as many as 26 to 28 strata semi-detached houses or approximately 11 or 12 detached houses, subject to approval.

At S$81 million for the land, the developer may break even at around S$4.5 million per strata semi-detached house and hope to sell for an average of S$5.3 million to S$5.4 million per unit, Ms Yong added.

Credo said the last land transaction of a sizeable mixed landed housing site was Whitley Heights in District 11, a 130,200 sq ft site which was sold at a land rate of S$1,222 psf in August 2011.

The tender for Coronation Grove closes at 2.30 pm on Tuesday, 13 December 2011.

Source : Channel NewsAsia – 16 Nov 2011