A prime freehold residential development along Sophia Road in District 9 has launched its first attempt at a collective sale, revealed marketing agent JLL.
The 15-unit Fairhaven apartment sits on approximately 16,660 sq ft of land and is zoned residential with a gross plot ratio of 2.1 in the 2014 Master Plan.
More than 80 percent of the owners, by share value and strata floor area, consented to the collective sale.
They are seeking offers in excess of $45 million, or about $1,169 psf per plot ratio on the potential gross floor area, after factoring in the 10 percent bonus balcony space for which no development charge is payable.
Commenting, Yong Choon Fah, National Director of Capital Markets at JLL said: “The site site within the Central Area (which generally comprises of areas close to Orchard Road and Marina Bay), whereby the number of dwelling units to be built in a development is not controlled by the stipulated minimum size for residential apartments. URA’s new guidelines which took effect on 4 November 2012, impose an average size requirement of 70 square metres or 100 square metres for the whole island, except for the Central Area. As a result, the supply of ‘shoe-boxes’, as they are often referred to, has been significantly curtailed.
“Potential buyers can consider building small apartments of between 40 to 50 square metres or so, to capitalise on its location and the curtailed supply of one-bedroom or small two-bedroom units.”
Since 2013, there have been no development sites made available for sale in the area, noted Yong. The last one was URA’s Mount Sophia site (currently Sophia Hills), which was hotly contested with nine bids two years ago.
Situated near Dhoby Ghaut Interchange and MRT station, there are also many established educational institutions in the vicinity, including the School of the Arts (SOTA) and Singapore Management University (SMU).
The tender for Fairhaven closes on 1 July 2015.
Image: Facade of Fairhaven along Sophia Road. (Photo by JLL)
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
