http://www.businesstimes.com.sg/sub/...76044,00.html?
Published February 2, 2012
Two more freehold properties offered for collective sale
Tender for Crystal Tower closes on Feb27, for Seletar Garden, on March 7
By BRYAN KOH
THE dragon appears to be breathing some life into the collective sales market, which many had expected to be subdued this year.
Seeking buyers: The collective sales of Seletar Garden and Crystal Tower come after the first collective sales on offer since the start of the Water Dragon year - two freehold residential redevelopment sites located at Balestier
Crystal Tower - located off Bukit Timah Road - is being re-launched for en-bloc sale, but at a slightly lower price. The freehold residential site is being offered for en-bloc sale for about $150 million, which translates to $1,458 per square foot per plot ratio (psf ppr).
Crystal Tower is a 28-unit, 11-storey residential development that rests on an elevated 60,482 sq ft site with a gross plot ratio (GPR) of 1.6.
A development charge of approximately $5.22 million is payable up to a plot ratio of 1.76, which takes into consideration an additional 10 per cent balcony space.
'This compares favourably to the most recent land sale in the vicinity - Nos 2-8 Robin Road, which was reported to be sold in December 2011 at a land rate of $1,426 psf ppr,' said Tang Wei Leng, Colliers International's executive director of investment services.
When it was first tendered in July last year, the indicative price was $155 million, or $1,600 psf ppr.
The tender closes on Feb 27.
Another project, at Seletar Garden, which consists of 30 units along Cactus Road, is being offered for $80-85 million, or $712-751 psf ppr.
Crystal Tower and the Seletar Garden development represent the second and third collective sales on offer - all within 10 days of the Water Dragon year.
The mixed-use freehold Seletar Garden development sits on a 73,098 sq ft site with a GPR of 1.4 and an allowable height of up to four storeys.
An application has been made to the Singapore Land Authority (SLA) for the amalgamation of the adjoining state land parcels which will enlarge the site to about 92,3111 sq ft. If the approval is granted, the total gross floor area (GFA) will increase correspondingly to 129,235 sq ft.
The Seletar Garden development is poised to target individuals working in the aviation industry who want the convenience of staying near their work place, said Yong Choon Fah, Credo Real Estate's executive director.
'The subject site has a lot of potential due to its proximity to the upcoming 320-hectare Seletar Aerospace Park . . . (that is) positioned to be a world class aerospace hub,' said Ms Yong. She added that the development also aims to boost retail offerings for surrounding residents given the dearth of retail stores in the neighbourhood.
The tender closes on March 7.
The separate en-bloc sales of the two freehold developments come on the back of Tuesday's announcement of the first collective sales on offer since the start of the Water Dragon year - two freehold residential redevelopment sites located at Balestier.
While there has been a quick succession of residential developments being put up for collective sale by tender, Chua Yang Liang, Jones Lang Lasalle's head of research, does not expect this trend to be sustainable in the short-run.
'Given the current (economic) headwinds, activities will probably be more muted in the first half of this year and could potentially pick up in the later half . . . (depending) on what happens in the global front.'
On successful tender, occupiers of en-bloc residences typically take 6-9 months to vacate, and it takes another two years on average before the project is developed and sold back into the market.
Dr Chua noted that developers who are bidding on these developments are looking long term, and basing this on their assessments of economic conditions in 2013-2014.
'We must look at demand beyond the current conditions. In two years' time, it's anyone's guess, demand could pick up if global economic conditions improve,' he added.
While economic conditions continue to influence the purchasing decisions of developers, they may exercise caution with land purchases as they also have to contend with the Additional Buyer's Stamp Duty (ABSD).
This means developers have to build and sell all units on residential sites within five years or pay a 10 per cent stamp duty if they fail to do so.
The ABSD took effect from Dec 8 last year.