In what could be another sign of the cooling en bloc market, a site off Sixth Avenue has been put back on the market at a discount, after it did not attract a single bidder at first go.
The reserve price for Royalville has been cut to $305 million – down 13 per cent from the minimum $350 million asked last October.
This new price works out to $1,106 per square foot (psf) per plot ratio after development charges. Credo Real Estate, which is managing the sale, says developers should now be able to break even at $1,700 psf. Other new developments in the area, like Duchess Residences, have been selling for above $2,000 psf.
Credo executive director Tan Hong Boon said: “With the reputable schools nearby, the new development should be popular among expatriates and families with school-going children.”
Royalville currently comprises 93 residential units and 11 shops. It can be redeveloped into a five-storey complex holding 140 apartments of around 2,000 sq ft each.
A record $12.5 billion worth of collective sales were transacted last year, but the market appears to be cooling, with some failing to attract bidders.
Other unsuccessful tenders have included Dunearn Gardens, Cavenagh Gardens, The Village, Amber Glades, Grange Heights, Thomson View Condominium and, most recently, Makeway View.
Source : Today – 8 Apr 2008