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Thread: Cairnhill Mansions to be launched for collective sale at $2,101 psf ppr

  1. #1
    Join Date
    Oct 2011

    Default Cairnhill Mansions to be launched for collective sale at $2,101 psf ppr

    Cairnhill Mansions to be launched for collective sale at $2,101 psf ppr

    Angela Teo / EdgeProp | October 5, 2017

    Cairnhill Mansions is set to be launched for collective sale via public tender in a few weeks’ time. Strategically located at Cairnhill Road next to The Ritz-Carlton Residences, Singapore, the guide price for Cairnhill Mansions is $362 million, or $2,101 psf per plot ratio (ppr), says marketing agent CBRE.

    The existing development is 61-unit, 18-storey condominium block sitting on a land area of 43,103 sq ft, with maximum gross floor area (GFA) of 172,239 sq ft, including a 10% bonus GFA for balconies. The new development could therefore yield 140 units, assuming an average size of 1,200 sq ft for the new units, according to CBRE.

    A redevelopment on the Cairnhill Mansions site will be able to capitalise on the potential 36-storey height for “unblocked, 360-degree views of Singapore’s skyline, featuring the lush greenery of Goodwood Hill, the CBD skyline, and beyond.”

    Located within walking distance of the Orchard Road shopping belt and Newton MRT interchange station, Cairnhill Mansions is nestled within an enclave with luxury high-rise residential developments such as The Scotts Tower, Ritz-Carlton Residences and Reignwood Hamilton Scotts. In addition, Cairnhill Mansions is located within a 1km radius of Anglo-Chinese School (Junior).

    Galven Tan, director of capital markets at CBRE, expects strong interest from local and overseas developers given the site’s prime location and “palatable deal size”.

  2. #2
    Join Date
    Oct 2011


    Cairnhill Mansions makes fifth bid to sell en bloc

    Oct 6, 2017

    Annabeth Leow

    Home owners at freehold condominium Cairnhill Mansions are looking to ride the wave of collective sales as they gear up for their fifth attempt at selling their estate.

    The public tender will be called within weeks, marketing agent CBRE said yesterday.

    Owners are floating a guide price of $362 million, a shade higher than what they hoped for in 2011, their last bid for a collective sale.

    They stand to reap at least $5.7 million each, or about $2,800 per sq ft (psf). Nearby units in similar projects have sold at between $1,731 psf and $3,919 psf this year.

    The 61-apartment complex in Cairnhill Road has a maximum gross floor area of roughly 172,240 sq ft, which could yield as many as 140 new units in the redevelopment.

    ZACD Group executive director Nicholas Mak said the site "is not really very big, compared with HUDC estates". But he noted that the asking price, at $2,101 psf per plot ratio (ppr), puts the price tag at the top of the charts on a unit basis.

    The estate's prime address is expected to carry a premium.

    CBRE's director of capital markets, Mr Galven Tan, said: "Judging by the trigger of the land parcel in Jiak Kim Street and the market response to the site, it is clear that developers are keen to enter the high-end residential segment. Thus far, private land sale sites have been confined to the suburban areas."

    The former Zouk club site moved off the government land sales reserve list last Friday after a developer committed to bid at least $689.4 million.

    Cairnhill Mansions tried for a collective sale in 2014, but could not muster up the required support of 80 per cent of owners. It did in 2011 but no buyer was willing to bite at the $361.5 million reserve price.

    But "stranger things have happened this year" with the effervescent market for residential collective sales, said Mr Mak, which could bode well for the fresh attempt.

    Mr Alan Cheong, senior director of research and consultancy at Savills, told The Straits Times: "Given the hunger developers have for redevelopment land, the en bloc may succeed this time round with a price biased towards the upper end of the $2,200 to $2,500 psf ppr range."

  3. #3
    Join Date
    Oct 2011

    Default Cairnhill Mansions owners gunning for S$362m


    Cairnhill Mansions owners gunning for S$362m

    The incoming developer will have to sell units in the new project at above $3,000 psf, but it's achievable: observers

    Oct 06, 2017

    Lynette Khoo

    YET another residential development here has obtained sufficient backing from owners to launch a collective sale in the next few weeks.

    Owners of Cairnhill Mansions in prime district 9 are putting the freehold development up for sale with an asking price of S$362 million; as of last week, more than 80 per cent of the owners there had signed the collective sale agreement.

    The price works out to S$2,101 per square foot per plot ratio (psf ppr), said its marketing agent CBRE. Subject to confirmation by the Urban Redevelopment Authority (URA), no development charge is payable.

    This counts as fifth time lucky for Cairnhill Mansions, for which attempts at a collective sale failed in 2005, 2007, 2011 and 2014.

    Gross profits for owners of the 61 apartments are estimated to be 70 to 80 per cent higher through the collective sale than if they were to sell their units individually, said CBRE director of capital markets Galven Tan.

    But market watchers note that the incoming developer would have to sell units in the new project at above S$3,000 psf, which they deemed "bullish" - but achievable.

    One seasoned property broker, who estimated the break-even price to be at between S$2,700 and S$2,800 psf, said it will be a "very optimistic pricing" at this juncture to sell the project at S$3,000 to S$3,100 psf. But such a level is "not unachievable", given the prospect of rising prices next year, he added.

    ZACD Group executive director Nicholas Mak reckoned that it would be the highest asking land rate among all collective sales launched in the past three years. "The developer would need to be one with a very strong luxury branding in order to command such a price for the new condo," he said.

    But CBRE's Mr Tan said the site's prime location, freehold status and palatable deal size are major attributes, and that market conditions are now working in its favour.

    The maximum allowable gross floor area (GFA) of the 43,103 sq ft site works out to 172,239 sq ft if a 10 per cent bonus GFA for balconies is included. With this, the new development could accommodate up to 140 units with an average size of 1,200 sq ft.

    The site is a few minutes' walk from the Orchard Road shopping belt, which offers amenities such as retail shops, F&B outlets and entertainment establishments; the Newton MRT station is some 400m away.

    Cairnhill Mansions is the first sizeable and prime freehold site to be offered in the area in recent years, Mr Tan said.

    The last time a residential site of this size in the prime Orchard vicinity was sold was nearly 10 years ago, when YTL bought Westwood Apartments for S$2,525 psf ppr.

    The momentum in the prime residential market has picked up over the past year and developers are keen to replenish their land banks as unsold inventories have fallen below the historical average, he said. "Judging by the trigger of the land parcel at Jiak Kim Street and the market response to the site, it is clear that developers are keen to enter the high-end residential segment."

    The Jiak Kim Street site was triggered for sale under the reserve list of the government land sales programme after the URA received an application from a developer, who committed to bid at a price of not less than S$689.35 million.

    Knight Frank head of consultancy and research Alice Tan noted that the development risk for the site of Cairnhill Mansions is low, given its palatable size. She expects the future project to be launched for at least S$3,200 to S$3,400 psf, based on the asking land rate.

    The Business Times understands that since news of the impending public tender for Cairnhill Mansions broke on Thursday, foreign and local developers who are "household names" have expressed initial interest.

    The nascent upcycle of the en bloc market has so far seen deals crossing the S$5 billion mark this year, up from just S$1 billion for the whole of last year.

    Mr Mak noted that Cairnhill Mansions may not be the only collective sale to be launched this year or next year with an asking price of more than S$2,000 psf ppr; Spring Grove in Grange Road is believed to be inching towards its initial asking price, reportedly at S$1,807 psf.

    Sounding a note of caution, he said: "As the asking prices of en bloc sales approach stratospheric levels, it remains to be seen whether the purchasing power of home-buyers can catch up."

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