Published February 6, 2007

Palm Beach Garden up for collective sale

The freehold site on Upper East Coast Rd has an indicative price of $75m

DTZ is launching the collective sale of Palm Beach Garden at Upper East Coast at an indicative price of $75 million for the 108,800 sq ft freehold site.

This works out to a unit land price of $494 psf of potential gross floor area including two payments the developer of the site will have to pay the state - an estimated $9.2 million development charge for intensification of land use, and an estimated $4.2 million premium for an adjoining 19,095 sq ft strip of vacant state land, assuming the authorities are willing to sell it.

The state land would enlarge the site area to 127,895 sq ft, allowing it to be redeveloped into a new condo of about 108 units averaging 1,500 sq ft, says DTZ Debenham Tie Leung, which is marketing the site through a tender that closes on March 8.

Palm Beach Garden is on a site zoned for residential use with a 1.4 plot ratio and five-storey maximum height.

DTZ's director for investment advisory services Tang Wei Leng said: 'The most recent land transaction in this area is UOL's collective sale purchase of East Coast Ville at $54.5 million reflecting $437 psf per plot ratio. Together with the sell-out residential project at Grand Duchess, they reflect the growing or perhaps return in interest to the area.

'With the strengthening economy, we believe that developers will find Palm Beach Garden to be attractive and envisage that a quality new condominium in this area could sell for about $950 to $1,000 per sq ft. This would support a land price of about $500 per sq ft per plot ratio.'