The Potong Pasir site could be redeveloped into a 600- to 748-unit waterfront condominium. Source: JLL
A 175-unit river-fronting residential development in Potong Pasir was launched for sale on Wednesday (31 August), revealed sole marketing agent JLL.
Built in the late 1980s, Raintree Gardens is a former HUDC estate that was privatised in 2014. It sits on 201,405 sq ft of land and comprises one seven-storey and two 12-storey mansionette blocks. Under the 2014 Master Plan, the site is zoned for residential use and has a gross plot ratio of 2.8.
More than 80 percent of the development’s owners have consented to the collective sale, and are looking at offers in excess of the minimum price of $315 million. This translates to a land rate of approximately $759 psf per plot ratio on the potential gross floor area, factoring in the differential premium payable to the state to top up the lease to a fresh 99-year lease, and for intensification of the site.
At this rate, the estimated breakeven cost for the successful purchaser should be around $1,250 psf, with the new units expected to fetch around $1,450 psf.
Nicholas Ng, Local Director, Capital Markets at JLL said: “This site presents a unique offering as it enjoys a direct frontage of over 200 metres onto the Kallang River and could potentially be rebuilt into a 600- to 748-unit waterfront condominium.”
The site is close to Potong Pasir MRT station, as well as upcoming developments and amenities being planned at the nearby Bidadari estate, which include a bus interchange, two community malls and a 10ha park comprising the new Alkaff Lake.
Ng noted that Build-To-Order flats in Bidadari have been extremely popular among applicants due to their central location, with over 20,000 applications for 3,733 flats.
In a statement, JLL said the tender exercise for Raintree Gardens will close on 5 October.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
