En bloc sales hit S$1.7 billion
04:47 AM Jun 28, 2011
by Ryan Huang Wenwu
SINGAPORE - About S$1.7 billion in residential collective sales have been transacted so far this year, according to property consultant Credo Real Estate, almost equal to those recorded for the whole of last year but well below the pre-crisis level of S$11.4 billion in 2007.
Among the latest transactions is a 40-unit walk-up apartment development in River Valley Road, which fetched S$70.5 million. Owners of the District 10 property will receive gross sale proceeds of about S$1.76 million each.
Credo said a new project on the site could potentially yield 130 apartment units averaging 500 sq ft each, depending on the layout and configuration. It said the site would be suitable for a boutique development with small apartment units, popular with both local and foreign professionals and investors.
Credo noted that the successful en bloc deals over the past 18 months had been relatively small. It added that the buyers were mainly small to medium-sized developers who were unable to bid for the large Government residential sites.
Mr Karamjit Singh, Credo's managing director, said the top five deals during this period ranged from US$137 million (S$170 million) to US$214 million each. In comparison, the top five deals in 2007 were worth over S$500 million each. Still, he said: "The outlook for the collective sales market for the rest of 2011 is positive."
St Patrick's Garden, a walk-up residential development comprising 98 units, located at 70-120 St Patrick's Road, is now up for en bloc sale.
Ms Tang Wei Leng, executive director for investment services at Colliers International, which is marketing the project, said: "The indicative price for the subject site is estimated in the region of S$188 million, or S$888 per sq ft per plot ratio, including the additional 10 per cent allowed for balcony space."
Over at Bukit Timah Road, a large prime freehold site has also been put up for collective sale. The sellers of Royalville are expecting offers in the region of S$370 million to S$400 million for the development, which sits on a site area of over 174,100 sq ft.