Three prime sites launched for sale
Signs of unabated demand for private homes have fired up the collective sale market, with three sites put up for en bloc sale yesterday.
One of the sites is Robin Court in Bukit Timah, which is being sold with an adjoining bungalow. The other two sites are a plot holding 13 shophouses along Owen Road and a 63-unit condominium in Katong called Amber Glades.
The launches came only a day after data from the Urban Redevelopment Authority (URA) showed that sales of private homes surged to 1,544 units last month – an 82 per cent increase from 847 units in June.
Analysts say the three sites will attract significant interest from developers as they are located in prime districts, particularly in the central and eastern regions of Singapore.
The sellers of the Bukit Timah property are expecting offers of between $66 million and $74 million as both Robin Court and the adjoining bungalow will be combined into one site of 40,518 square feet.
The site is assigned a gross plot ratio of 1.4 and a five-storey height limit. The break-even price for the prospective developer is estimated at between $1,600 and $1,700 per square feet.
Meanwhile, the 40,917 sq ft property Amber Glades in Katong is expected to be sold for at least $130 million. The site has a gross plot ratio of 2.8 and developers can build a 22-storey block with 150 units at 840 square feet each, or 84 units at 1,500 square feet each. Amber Glades owners may pocket about $1.4 million to $2.4 million each from the collective sale.
Owners of the Owen Road shophouses are asking for $43 million for the 15,338 square feet site. The site has been zoned for use as a residential development with commercial activity on the first storey. It has a gross plot ratio of 3 and can be built up to five storeys.
Market experts believe that the launches are the beginning of a new wave of en bloc sales amid high demand in the property market.
“There are a lot of properties coming up for sure till the end of this year, with many of them trying for an en bloc a second time. Developers can be choosy over what they want to buy,” said Ms Christina Sim, director of investment at Cushman and Wakefield.
Some developers may prefer to tender for sites at Government Land Sales as the process is more straightforward but en bloc sites can offer developers prime locations with reasonable pricing, said Ms Sim.
Source : Today – 18 Aug 2010