Sutton Place to be relaunched for en bloc sale at unchanged S$285 million guide price

Feb 08, 2023

SUTTON Place, a freehold residential development at 24, 26 and 28 Farrer Road in prime District 10 will be relaunched for collective sale on Thursday (Feb 9). Its guide price remains at S$285 million after the last attempt closed on Sep 15 last year without a deal.

This is the third time Sutton Place is going on the market, with its first attempt in 2018 at a reserve price of S$268 million.

The five-storey condominium comprises 44 units on a land area of approximately 93,183 square feet (sq ft). Based on the S$285 million guide price and after factoring in a land betterment charge of about S$22.73 million, the land price works out to S$2,064 per square foot per plot ratio (psf ppr), said marketing agent Colliers.

The site has a development baseline of approximately 130,201 sq ft or about 87 per cent of the allowable gross floor area (GFA), which Colliers says will provide some buffer on the land betterment charge payable by the successful bidder.

Inclusive of the 7 per cent bonus balcony area, the GFA will increase to approximately 159,531 sq ft, which will lower the land price to S$2,007 psf ppr.

Colliers said prospective buyers can redevelop the site to accommodate some 162 apartments at a minimum size of 915 sq ft each. It added that the Land Transport Authority has confirmed a pre-application feasibility study is not required for Sutton Place based on 162 units, subject to the fulfilment of some conditions.

Tang Wei Leng, Colliers’ managing director and head of capital markets and investment services, said that with the reopening of China, she foresees the potential return of well-heeled Chinese buyers who are looking to invest or relocate to Singapore, thereby providing an additional demand pool.

“In particular, upcoming launches in the Core Central Region are estimated at around just 22 per cent of the total new launches in 2023, making such freehold projects in prime locations and near reputable schools even harder to come by,” she said, noting that the proposed number of units and asking price of less than S$300 million are “digestible” and help reduce developers’ risks.

Tang added that developers also have the option to position the site as an exclusive development by building bigger units to cater to families.

Located at the fringe of a Good Class Bungalow Area, schools such as Nanyang Primary School, Raffles Girls’ Primary School, Hwa Chong Institution and National Junior College are within a two-kilometre radius of Sutton Place.

Farrer Road MRT station is a 10-minute walk away, with the Pan Island Expressway and Ayer Rajah Expressway also easily accessible.

The public tender for Sutton Place closes on Mar 9 at 3 pm.

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