Two more residential sites were put up for collective sale yesterday, taking the total value of properties launched for en bloc sale in October to approximately S$5 billion.
The tender for the first site, Laguna Park, is being handled by Knight Frank and has a reserve price of S$1.25 billion, which translates to around S$954 psf ppr, including a differential premium of S$560 million.
Located at Marine Parade Road, Laguna Park has a total area of 62,941.2 sq m. It is zoned for residential development under the 2008 Master Plan, with a plot ratio of 2.8. With a potential gross floor area (GFA) of around 176,235 sq m, the breakeven cost is expected to be around S$1,400 psf.
It is close to good schools like St Patrick’s School, Victoria Junior College, CHIJ (Katong) Primary and Tao Nan School. Knight Frank believes that the proximity of the site to the seafront will be a key selling point for any new development.
The site was launched for sale earlier this year with an asking price of around S$1.33 billion. However, the tender closed without a successful bid.
While the downward revision of its price tag suggests that sellers may be more motivated to sell now, Nicholas Wong, Executive Director for Investment at Knight Frank, said the new requirements for collective sales allow a residential development to be put up for sale for one year only, after obtaining 80 percent approval from its homeowners. When this lapses, sellers will have to seek a new mandate. This explains why several sellers choose to relaunch the site for collective sale within a year instead.
Meanwhile, the second site, Henry Park Apartments, is being marketed by Credo Real Estate, with an indicative price of between S$170 million and S$180 million.
Located off Holland Road, the 64-unit development comprises 48 apartments and 16 shop units. It has a total land area of 99,800 sq ft and is zoned for residential development with commercial space on the first storey.
According to The Business Times, the Urban Redevelopment Authority (URA) has advised that the site be allowed a gross plot ratio of up to 1.4 and a maximum building height of four storeys. This means that a new development on the site could have a GFA of approximately 140,000 sq ft.
The tender for Henry Park Apartments will close on 1 December, while the Laguna Park tender will close on 6 December.
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