SINGAPORE (EDGEPROP) – Knight Frank Singapore on 16 July announced the re-launch of the sale of Summer Green, a freehold residential redevelopment site off Balestier Road. The site was unsuccessfully launched for collective sale first in January 2018 with a reserve price of $48.5 million.
Image credit: Knight Frank Singapore
The owners are now expecting offers of above $48 million for the freehold residential redevelopment site. This means the reserve price has dropped by $500,000 in the relaunch. With the old reserve price, the land rate would have translated to approximately S$1,188 psf ppr, inclusive of a development charge of approximately S$253,000. With the new reserve price, the land rate works to around $1,178 psf per plot ratio (ppr).
“The reserve price for Summer Green is comparable to recent transactions of Kemaman Point at S$1,173 psf ppr (S$143.88 million) and Ampas Apartment at S$1,122 psf ppr (S$95 million),” said Mr Ian Loh, Executive Director and Head of Investment and Capital Markets at Knight Frank Singapore.
Kemaman Point, an 89-unit residential development along Balestier Road, has been collectively sold for $143.88 million to Soilbuild Group Holdings after a trying collective sale process. Knight Frank Singapore was the marketing agent for this successful collective sale as well, and it reported that each owner stands to receive $1.4 million to $2.32 million from the sale of the freehold condominium.
Summer Green is a freehold, thirteen-storey residential development comprising twenty-four apartments, and has a site area of 1,360.7 sqm (approximately 14,646 sq ft). Under the 2014 Master Plan, the site is zoned for use under “Residential” with an approved plot ratio of 2.8. The site is regular in shape and enjoys a frontage of approximately 30 metres.
The freehold residential redevelopment site is conveniently located along Balestier Road, within walking distance to a wide array of amenities and is just a few minutes drive to both Novena Square and United Square, the Orchard Road shopping belt and the Central Business District. The development enjoys the views of landed houses along Boon Teck Road and is accessible by major roads including the Pan-Island Expressway (PIE) and Central Expressway (CTE).
“Balestier is currently undergoing great rejuvenation with the opening of Zhongshan Mall, Ibis Singapore Novena and HealthCity Novena. At the same time, we continue to see the heightened interest for redevelopment sites, especially for boutique redevelopment sites with a Gross Development Value (GDV) of below S$100 million,” Mr Loh noted.
Adding: “The purchaser could potentially configure the maximum permissible Gross Floor Area (GFA) of approximately 41,010 sq ft into 54 apartment units with an average size of 753 sq ft, subject to the Urban Redevelopment Authority’s approval.”
Knight Frank Singapore believes that despite recent government cooling measures, the price quantum for the freehold residential redevelopment site off Balestier Road is still palatable, and is a low-risk acquisition to mid-sized developers. The tender for Summer Green will close on Monday, 20 August.
On July 5, Knight Frank Singapore announced the launch of the sale of another exclusive freehold residential development site along Chancery Lane, Chancery Esquire. The tender for Chancery Esquire will close on 2 August 2018, Thursday at 3 pm.
Chancery Esquire is a private residential estate comprising a block of 31 apartment units ranging from 84 sqm to 158 sqm and has a site area of 2,696.3 sqm (approx. 29,022 sq ft). The site is regular with 50 metres’ frontage onto Chancery Lane.
Under the 2014 Master Plan, the site is zoned “Residential”, with a Gross Plot Ratio (GPR) of 1.4. Based on the existing Gross Floor Area (GFA) of 4,476.87 sqm and assuming an average size of 70 sqm, the site could potentially yield 63 new residential units upon redevelopment. The Land Transport Authority (LTA) has confirmed that a Pre-Application Feasibility Study (PAFS) on traffic impact will not be required for the freehold residential development site.
The immediate vicinity is predominantly surrounded by Good Class Bungalows, landed homes and condominiums. Many established schools, namely Anglo-Chinese School (Primary), Anglo-Chinese School (Barker Road) and Singapore Chinese Girls’ Primary and Secondary Schools are located within 1 km from the development. Less than 2 km away stand other well-known educational institutions, including Anglo-Chinese School (Junior), St. Joseph’s Institution Junior, St. Margaret’s Primary School, St. Joseph’s Institution, CHIJ Toa Payoh, Farrer Park Primary School and Catholic Junior College.
Chancery Esquire is nestled within the exclusive Chancery estate, located strategically between Newton MRT Station and Novena MRT Station, with a wide array of amenities, food and beverage hubs and malls such as Balmoral Plaza, Newton Food Centre, United Square and Novena Square located close by.
The freehold residential development development also has great accessibility to top notch medical facilities, with Mt. Elizabeth Hospital, Mt. Elizabeth Novena Hospital, Tan Tock Seng Hospital and KK Women’s & Children’s Hospital a short drive away.
Major arterial roads as well as expressways such as the Central Expressway (CTE), Pan-Island Expressway (PIE), Bukit Timah Road and Dunearn Road provide seamless connectivity to other parts of Singapore. The site is a 15-minute drive to the Central Business District and approximately 20 minutes’ drive to Changi International Airport.
The owners of the freehold residential development site are expecting offers above their reserve price of $86.6 million. Due to the high as-built GFA of 4,476.87 sq m, this translates to a land rate of approximately $1,797 per square foot per plot ratio (psf ppr) with no development charge payable, subject to URA’s development baseline search.
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