Changi Complex, which was launched for en bloc sale in March, has been purchased by World Class Land, an Aspial Corporation’s subsidiary, for $54.3 million, exclusive of a development charge of $3.6 million.
The total land price of the Bedok Road site adds up to $57.9 million, which translates to a sale price of $671 psf. The 61,670.2-sq-ft en-bloc site may also be developed with the 10,457.2-sq-ft adjoining State lands.
Currently, the State lands house a power station, and with the acquisition, the total development cost is projected to exceed $62 million, or $615 psf ppr.
“The average cost can be further lowered to $577 psf ppr should the developer choose to utilise the bonus 10-percent balcony area in the new development,” said Mr. Sieow Teak Hwa, managing director of Teak Hwa Real Estate, which brokered the deal.
World Class Land can transform the 30-year-old, 1.4-plot-ratio site, which is intended for commercial and residential use on the first storey, into a low-rise mixed development project of about 200 units at 500 sq ft per unit. The break-even cost of the new development stands at $980 psf to $1,000 psf.
“New freehold apartments can fetch about $1,300 psf while the shop units can sell in excess of $2,000 psf,” said Mr. Sieow.
Of the 40 units in Changi Complex, 82 percent of the owners have given their consent. Shop owners will get $1.8 million while apartment owners will reap $1.2 million.
According to Mr. Sieow, its close proximity to the amenities and eateries in the vicinity and the seven-minute walk to Tanah Merah MRT station will be the main draw of the development, as is its potential to become a trendy area like Holland Village.
However, Mr. Nicholas Mak, a property lecturer from Ngee Ann Polytechnic, was sceptical about the proposed development, saying that suburban condos like East Meadows and Casa Merah went for $720 psf and $830 psf, respectively.
“They are family-sized and are nearer to Tanah Merah MRT Station than Changi Complex. And the break-even price of Changi Complex is around the same as the transacted price of those developments,” he said. He added that the new development is likely to house "Mickey Mouse" units among a number of suburban developments.
Property developers could find it challenging to put the units up for sale at such a high estimated price, coupled with the height restriction, said Mr. Mak.