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01-12-14, 22:22
http://www.straitstimes.com/archive/tuesday/premium/money/story/derby-court-collective-sale-683m-price-tag-20141125
Derby Court up for collective sale with $68.3m price tag
Published on Nov 25, 2014 1:05 AM
THE freehold Derby Court development in Novena goes up for collective sale today with a price tag of $68.3 million.
Market watchers tip that the site will generate a lot of interest from developers, given its location and relatively low headline price.
The 35-year-old condominium in Derbyshire Road is near the Novena MRT station and United Square, Velocity@Novena Square and Square 2 malls. St Joseph's Institution (Junior) and Anglo Chinese School (Junior) are nearby as well.
Developers are wary of the faltering property market these days but the asking price of $68.3 million could lure bidders.
It works out to $1,286 per sq ft (psf) per plot ratio (ppr), based on a gross floor area of 53,094 sq ft, its broker Savills said in a statement.
The new development on the 18,506 sq ft plot could have an extra gross floor area of up to 10 per cent for balconies. Based on this, the price will work out to $1,169 psf ppr.
"Sites with an absolute price quantum of less than $70 million for a highrise 36-storey development are few and far between," said Ms Suzie Mok, senior director of investment sales at Savills Singapore.
"This is a sweet spot to boutique developers in the present market," she added.
"We expect the site to draw interest due to its locational attributes, established amenities and compact size."
In July, the 325-unit Spring Grove condo in Grange Road hit the collective sale market with an eye-popping price tag of $1.39 billion, but had no takers.
Market watchers said then that the price did not make sense in a tepid market, as developers would be undertaking a huge risk with such a large project.
Owners of Derby Court's 18 four-bedders, each spanning 1,991 sq ft, can expect to receive about $3.1 million in proceeds, while owners of the two maisonette penthouses, measuring 3,897 sq ft each, should reap about $6 million.
At the former Ultra Mansion, a freehold site also in Derbyshire Road, owners received about $3.1 million each when the site of the 48-unit project was scooped up for $149.1 million in March last year. That price worked out to about $1,170 psf.
The Derby Court land has a plot ratio of 2.8, but the condo has been built up to a plot ratio of 2.869 after approval from the Urban Redevelopment Authority.
This means a developer will not have to pay development charges to intensify the site's use, said Ms Mok.
A new development on the plot could accommodate up to 70 units of about 753 sq ft each, with a breakeven cost of around $1,700 psf.
The Derby Court tender closes on Jan 20.
CHERYL ONG
Derby Court up for collective sale with $68.3m price tag
Published on Nov 25, 2014 1:05 AM
THE freehold Derby Court development in Novena goes up for collective sale today with a price tag of $68.3 million.
Market watchers tip that the site will generate a lot of interest from developers, given its location and relatively low headline price.
The 35-year-old condominium in Derbyshire Road is near the Novena MRT station and United Square, Velocity@Novena Square and Square 2 malls. St Joseph's Institution (Junior) and Anglo Chinese School (Junior) are nearby as well.
Developers are wary of the faltering property market these days but the asking price of $68.3 million could lure bidders.
It works out to $1,286 per sq ft (psf) per plot ratio (ppr), based on a gross floor area of 53,094 sq ft, its broker Savills said in a statement.
The new development on the 18,506 sq ft plot could have an extra gross floor area of up to 10 per cent for balconies. Based on this, the price will work out to $1,169 psf ppr.
"Sites with an absolute price quantum of less than $70 million for a highrise 36-storey development are few and far between," said Ms Suzie Mok, senior director of investment sales at Savills Singapore.
"This is a sweet spot to boutique developers in the present market," she added.
"We expect the site to draw interest due to its locational attributes, established amenities and compact size."
In July, the 325-unit Spring Grove condo in Grange Road hit the collective sale market with an eye-popping price tag of $1.39 billion, but had no takers.
Market watchers said then that the price did not make sense in a tepid market, as developers would be undertaking a huge risk with such a large project.
Owners of Derby Court's 18 four-bedders, each spanning 1,991 sq ft, can expect to receive about $3.1 million in proceeds, while owners of the two maisonette penthouses, measuring 3,897 sq ft each, should reap about $6 million.
At the former Ultra Mansion, a freehold site also in Derbyshire Road, owners received about $3.1 million each when the site of the 48-unit project was scooped up for $149.1 million in March last year. That price worked out to about $1,170 psf.
The Derby Court land has a plot ratio of 2.8, but the condo has been built up to a plot ratio of 2.869 after approval from the Urban Redevelopment Authority.
This means a developer will not have to pay development charges to intensify the site's use, said Ms Mok.
A new development on the plot could accommodate up to 70 units of about 753 sq ft each, with a breakeven cost of around $1,700 psf.
The Derby Court tender closes on Jan 20.
CHERYL ONG