Two more freehold properties offered for collective sale

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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.

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Two more sites up for collective sale

Published on Feb 2, 2012

By Cheryl Lim


SOME building owners are still optimistic over their collective sale prospects, with two more sites put up for sale, despite new tougher rules.

The new measures, announced in December, mean that developers buying residential sites, including en bloc properties, will have to develop and sell all units within a five-year period.

Property consultants say the rule could significantly slow the collective sale market though the latest two have not been deterred.

The first is a freehold mixed-use development off Yio Chu Kang Road. Built in the 1980s, the 30-unit development is zoned for residential and commercial use.

The site has a land area of 73,098 sq ft, a plot ratio of 1.4 and an allowable height of up to four storeys.

An application has been made to the Singapore Land Authority to amalgamate the adjoining state land parcels which could enlarge the site to about 92,311 sq ft.

Sellers are expecting offers of $80 million to $85 million. Depending on the ratio of the commercial and residential space of the development, the expected offer price would reflect a land rate of around $712 per sq ft per plot ratio (psf ppr) to $751 psf ppr. The tender closes on March 7.

The second site, Crystal Tower at Ewe Boon Road, has been relaunched for sale with a lower indicative price of $150 million, which works out to about $1,458 psf ppr.

Owners had asked for $155 million last July. No indicative price was given for the last attempt in October.

This price is close to the land rate of $1,462 psf ppr achieved during the sale of No. 2 to No. 8 Robin Road in December last year. A development charge of $5.22 million is payable to ramp up the site's plot ratio to a maximum of 1.76.

This is the third time in two years the 11-storey freehold residential development has been put on the market.

The 60,482 sq ft site can be potentially redeveloped into a 12-storey residential development comprising 81 units of 1,200 sq ft each. This tender ends on Feb 27.

Separately, the Sim Lian Group has received 1,000 applications for its newest executive condominium project The Tampines Trilliant.

Sixty per cent of the applicants were residents living in the east, including Tampines, Pasir Ris and Bedok.

Bookings for the 670-unit project in Tampines will start this Saturday.

[Leeds]

SINGAPORE: The freehold mixed-use development Seletar Garden has been successfully sold in a collective sale exercise for S$96.2 million to a consortium led by Oxley Holdings. It is the first successful en bloc sale out of the eight sites launched this year.

The sale price is much higher than the asking price of between S$80 million and S$85 million.

Each apartment owner is set to receive between S$2 million and S$2.3 million, while each shop owner can get between S$5 million and S$5.4 million.

The freehold site, launched on February 2, has an area of 73,098 square feet. It has a gross plot ratio (GPR) of 1.4 and an allowable height of up to four storeys.

The current development comprises 20 apartments and 10 shop units.

More than 80 per cent of the owners - by share value and strata floor area - had signed a collective sale agreement to sell the property.

Credo Real Estate, who handled the sale, said the sale price reflects a land rate of S$890 per square foot per plot ratio. This is also after factoring in the potential of acquiring the adjoining state land sites, Credo said.

"The Singapore Land Authority (SLA) has also granted an in-principal approval for the amalgamation of some adjoining state land parcels for comprehensive redevelopment of the site," Credo said.

Seletar Garden received five bids when its tender closed on March 7.

One of the attractions of the site is its proximity to the upcoming the 320-hectare Seletar Aerospace Park, which will open in 2018.

-CNA/ac