Hillview residential development site up for sale with S$255.4m reserve price

The redevelopment will result in a transformation of the area into a residential area on high ground with commanding views

Mar 10, 2022



A TOTAL of 23 terrace factories in Hillview, including 14 units whose previous tender was withdrawn 2 months ago, have been put on the market.

The 999-year leasehold land parcel at 26-38D Hillview Terrace is available for sale by tender with a reserve price of S$255.4 million, sole marketing agent Colliers said on Wednesday (Mar 9).

The plots are all zoned for residential use under the Urban Redevelopment Authority's (URA) Master Plan 2019. The existing factories span a combined site area of 119,813 square feet (sq ft), which can be amalgamated with the adjoining access road and electrical substation to form a larger site area of about 157,540 sq ft.

Colliers said that URA has granted a one-off, time-limited bonus residential gross plot ratio of 0.3 above the 1.62 stated in the Master Plan 2019, to facilitate a comprehensive redevelopment of Hillview Terrace for residential use. That means the allowable gross plot ratio has been raised to 1.92.

Therefore, the maximum allowable gross floor area is about 302,478 sq ft, which could yield up to 330 units, subject to approval from the authorities, Colliers said.

"To enjoy the bonus gross plot ratio, the land must be redeveloped in accordance with the parcellation plan prescribed by URA," the marketing agent added.

The buyer of 26-38D Hillview Terrace can also consider purchasing the adjoining parcel to the south - comprising 31-35 and 50-64 Hillview Terrace, Hillview Building and Hillview Warehouse - to develop into a single enlarged residential development.

The reserve price translates to a land rate of S$1,336 per square foot per plot ratio (psf ppr), including an estimated development charge of S$116.8 million and an estimated alienation cost of S$31.9 million for the road and the substation, Colliers noted.

After factoring in an additional 7 per cent of bonus gross floor area for the balcony incentive scheme, the land rate will be lowered to S$1,289 psf ppr.

In late January 2022, the tender for the 14 factories situated at 32-38D Hillview Terrace as well as a separate tender for 11 freehold factory units at 31-35 and 50-64 Hillview Terrace were taken off the table shortly before their scheduled closing dates.

At the time, Colliers said that the owners had decided to scrap both tenders because the parcels were being "strategically repositioned for other development plans".

In its press statement on Wednesday, the marketing agent said: "The redevelopment of the entire Hillview Terrace area will see a transformation into a charming residential enclave on high ground with commanding views, surrounded by parks and greenery to the north and landed residential properties to the south."

John Bin, director, capital markets & investment services, Singapore at Colliers, noted that from a demand perspective, the site characteristics are ideal for residential development given its north-south orientation and views of Bukit Gombak Hill, Bukit Batok Town Park and Little Guilin to the north.

Also, with the bonus plot ratio incentive and possibilities of a regular parcellation, property developers can have more flexibility in designing their vision and concept for the site, he added.

All the owners of the 26-38D Hillview Terrace properties have consented to the intended joint sale. Toh Khai Yeow, chairman of the joint sale committee, said the bonus plot ratio granted by URA was "helpful in unifying the owners of 26-38D Hillview Terrace as a community".

The public tender will close at 3 pm on Apr 12, 2022.