Orchard Bel Air relaunched for en bloc sale at unchanged S$587.5m guide price

Feb 01, 2023

PRIME District 10’s Orchard Bel Air has been relaunched on Tuesday (Jan 31) for collective sale. The guide price remains at S$587.5 million after the previous attempt closed on Sep 6 without a sale.

Located next to the newly-opened Orchard Boulevard MRT station, the 99-year leasehold condominium – the lease of which started in August 1980 -- was first put up for sale on Jul 27, 2022.

Orchard Bel Air has a land area of about 93,126 square feet (sq ft) with a gross plot ratio (GPR) of 2.8 under the Master Plan 2019, and a building height control of up to 36 storeys. It has the potential to be redeveloped up to its existing verified gross floor area of approximately 276,298 sq ft at a GPR of 2.96.

Marketing agent Knight Frank said its guide price translates to a land rate of approximately S$2,620 per square foot per plot ratio (psf ppr) after factoring in an upgrading premium of about S$136 million for the lease top-up. Taking into consideration the 7 per cent bonus gross floor area allowed for balconies, this translates to approximately S$2,551 psf ppr.

It also said an estimated 128 new residential units averaging 2,153 sq ft could be developed on the site, depending on layout and configuration, and subject to approval from the authorities. The redevelopment would not require a pre-application feasibility study on traffic impact.

Built in 1984, Orchard Bel Air comprises 71 residential units across 25 storeys. High-end residential developments, hotels, offices and shopping malls, including Tanglin Mall, Ion Orchard and The Forum are located nearby.

Chia Mein Mein, Knight Frank’s head of capital markets (land and collective sale), said the development’s “perfect location” offers unobstructed panoramic views of the cityscape, and makes it one of the rare redevelopment sites available for sale in the land-scarce Orchard location.

“There may not be another residential redevelopment site available for sale within this prestigious enclave in the near future,” she said. “Especially in the current climate, as owners’ concerns on replacement costs make it challenging to secure a mandate in any en bloc process.”

According to Knight Frank, the demand for luxury residences in Singapore started to gain traction following the opening of international borders. Sales momentum has been positive at the nearby Park Nova, with nine units transacted since the third quarter of 2022 at around S$4,400 to S$4,900 psf, with the project achieving approximately 87 per cent sales.

A 2,799 sq ft unit at Boulevard 88 along Orchard Boulevard was sold for S$13.78 million or S$4,924 psf in December 2022. Meanwhile, Les Maisons Nassim saw four transactions with prices of between S$36 million and S$68 million, or S$5,296 to S$6,057 psf in recent months. The development is now approximately 79 per cent sold.

“The high-end residential market, which has not experienced as much price growth in the last two years when compared to suburban homes, stands to benefit from the flight of private wealth to the safe haven sanctuary that Singapore represents,” said Chia, adding that this is especially so for family-sized luxury homes in the heart of Orchard Road.

https://www.businesstimes.com.sg/pro...5m-guide-price