The Straits Trading Company’s property unit is set to develop a cluster of freehold bungalows in the prime area of Chancery Lane, as the mainboard-listed firm is acquiring Tertius Development, the original developer.
The Chancery Five project will have 12 bungalow units located on a 27,600-sq-ft land site. The size of each bungalow will range from 4,800 sq ft to 6,500 sq ft.
Each of the two-storey bungalows will have an entertainment room, a private basement car park, five rooms, an attic, a lift and a swimming pool.
According to Eric Teng, chief executive officer of Straits Trading, the Chancery Five project is part of its overall strategy to develop high quality and exceptional properties.
Although the company has not yet disclosed the exact value of the development, real estate analysts have estimated it to be worth around $58 million.
Based on the estimated worth of the project, Donald Han, the regional managing director of Cushman & Wakefield, said that the bungalows would be priced at slightly less than $1,000 psf.
This means that each unit would be priced around $4.8 million, which he referred to as "a fair price for a bungalow on Chancery Lane".
Mr. Han added that the project’s close proximity to Orchard Road and top schools like Anglo-Chinese and Singapore Chinese Girl’s schools make it a hit with sub-letters and families.
Meanwhile, Nicholas Mak, a property lecturer from Ngee Ann Polytechnic, said that the Chancery Five project should fetch around $500 psf to $600 psf, based on similar properties in the vicinity.
“With the largest unit at about 6,500 sq ft, I have a feeling that they will price it above S$4 million per unit,” he said.
“Landed property will always have a place with investors. It had the highest price increase in 2009 compared to other types of properties,” said Mr. Han.