Two freehold condominiums in Singapore’s central area have been launched for collective sale despite the new property cooling measures, reported the Business Times.
The 24-unit Summer Green in Balestier Road is up for grabs at a reserve price of $48 million, which works to around $1,178 psf per plot ratio (ppr). This includes a development charge of about $320,000, and each owner could pocket approximately $2 million if they secure a buyer, according to marketing agent Knight Frank.
“The reserve price for Summer Green is comparable to recent transactions of Kemaman Point at S$1,173 psf ppr (S$143.88 million) and Ampas Apartment at S$1,122 psf ppr (S$95 million),” said the property consultancy’s executive director and head of investment and capital markets, Ian Loh.
Subject to obtaining approval from the relevant authorities, the 14,646 sq ft residential site with a plot ratio of 2.8 can be intensified to a gross floor area (GFA) of 41,010 sq ft containing a total of 54 apartments averaging 753 sq ft.
A redevelopment of Summer Green is expected to benefit from the area’s revitalisation. “Balestier is currently undergoing successful rejuvenation with the opening of Zhongshan Mall, Ibis Singapore Novena and Health City Novena,” Loh noted.
Meanwhile, Knight Frank put up Chancery Esquire for en bloc sale earlier this month, with the owners anticipating offers surpassing their reserve price of $86.6 million ($1,797 psf ppr).
Unit owners at the 31-unit project at Chancery Lane are estimated to get $1.94 million to $3.76 million.
The 29,022 sq ft plot has an existing gross floor area (GFA) of 48,188.6 sq ft. Assuming an average apartment size of 753 sq ft, the site can be redeveloped into a 63-unit condo. No development charge is payable subject to a development baseline search by the Urban Redevelopment Authority (URA).
Both sites will not require a pre-application feasibility study (PAFS). And the tender exercise for Chancery Esquire and Summer Green will close on 2 and 20 August respectively.
Loh highlighted that small sites with up to 100 homes are easier to sell. This means there is less risk for the developer being fined for not completing and selling all unit within five years of buying the land under the additional buyer’s stamp duty (ABSD) rules.
ZACD Group’s executive director Nicholas Mak agrees that such plots are less risky and ness less capital. However, these sites may also lack economies of scale and are less appealing to big developers with ample capital.
“Well-located sites that are competitively priced – taking into consideration new market realities – should still garner some interest,” added Colliers International managing director Tang Wei Leng.
“Ultimately, whether a developer acquires a small or large site is also dependent on other factors including its development pipeline, growth strategy and financial capabilities.”
Senior Content Producer, Christopher Chitty, edited this story
