Eunosville up for collective sale

Eunosville, a former Housing and Urban Development Company (HUDC) estate, has been put up for collective sale. If successful, it will be the largest en bloc deal in six years.

The announcement yesterday by sole marketing agent Jones Lang LaSalle came two years after the 330-unit residential estate was privatised and six years after the last successful en bloc sale of an HUDC site. Eunosville, directly opposite Eunos MRT Station, has a reserve price of S$688 million. If sold, it will be the largest collective sale in absolute price terms after Farrer Court’s S$1.34 billion in 2007.

Besides Farrer Court, only four other HUDC estates have successfully been sold en bloc. They are Gillman Heights (S$548 million), Waterfront View (S$385 million), Minton Rise (S$342 million) and Amberville (S$183 million), all sold in 2006 and 2007, said a statement by Jones Lang Lasalle.

Mr Tan Hong Boon, Regional Director of Investments at Jones Lang LaSalle, said: “It is not often that a privatised HUDC estate is launched for collective sale, largely due to the sheer size of such estates.”

“The lack of new supply of large-scale residential projects in the vicinity should also bode well for the successful purchaser of Eunosville. Based on latest URA-compiled statistics provided by developers, there are only about 30 unsold new residential units available in large projects (of at least 300 units) within the 2km radius of Eunosville,” he added.

There are 18 HUDC estates comprising 7,731 residential and 23 shop units. All except Braddell View have been privatised or identified for privatisation. With a land area of about 376,712 sq ft and a gross plot ratio of 2.8, the Eunosville site can potentially yield 1,000 homes with an average size of 1,100 sq ft, Jones Lang LaSalle said.

The reserve price translates to about S$799 psf per plot ratio, including estimated differential premiums of S$155 million payable to top up the lease to 99 years and for intensification of use, subject to approval from the authorities, the marketing agent said.

Eunosville is attractive due to its close proximity to the MRT station as well as wide road frontages, said analysts. However, they cautioned that the price tag may be too high for many developers.

Mr Ku Swee Yong, Director of real estate consultancy International Property Advisor, said: “The construction costs for 1,000 units of 1,100 sq ft each might be S$300 per sq ft or S$330 million. Total project costs will exceed S$1 billion for land and construction alone. This will limit the number of buyers in the market.”

The Eunosville tender closes on July 24.

Source : Today – 19 June 2013

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