Friday, July 27, 2007

East Coast en bloc sale fetches 25% price premium July 27, 2007

St Patrick’s View sold to TG Development for $79 million

ST PATRICK’S View, off Telok Kurau Road, has been sold en bloc to TG Development Pte Ltd (TGD) for $79 million, 25 per cent higher than the indicated price when the collective sale was launched three months ago.

On its bullish bid, TGD managing director Ong Boon Chuan said: ‘The prices for Districts 9, 10 and 11 are quite high but there is room for more upside in the outskirts.’

Giving a contrarian view, Mr Ong also said that while higher asking prices for en bloc sites may lead to resistance from developers, it also means there will be ‘less supply in the market’.

Marketed by Colliers International, executive director (Investment Sales) Ho Eng Joo added: ‘The benchmark price of St Patrick’s View reflects developers’ continued confidence and optimism in the East Coast area, as demand for new residential projects still remains strong.’

At $79 million, the price works out to $682 per sq ft per plot ratio (psf ppr), including an estimated development charge of $302,318 for the 83,013 sq ft site.

Mr Ong said that TGD plans to build a five-storey development of about 100 units with unit sizes of between 1,000 sq ft and 1,400 sq ft. The launch is targeted for mid-2008.

The breakeven cost is estimated at around $1,000 psf, which means new units have to be sold in excess of this.

Over in Kembangan, Savills Singapore is marketing the launch of the 32-unit D’Oasia by Monfort Land at about $910 psf.

To date, more than 50 per cent of the apartments have been sold during a recent private preview. The development is expected to be completed by Dec 30, 2010.

Savills is also marketing the collective sale of Trendale Tower on Cairnhill Road.

The indicative price of $180 million is 12.5 per cent higher than it was three months ago when it was put up for sale through an expression-of-interest exercise.

The latest price works out to about $2,477 psf ppr with the breakeven estimated at between $3,100 and $3,200 psf. Savills director of investment sales Steven Ming said: ‘It is reasonable to project a selling price of a new project on this site at between $3,500 and $3,600 psf.’

The 21,709 sq ft site has a plot ratio of 2.8 and can yield about 36 units of 2,000 sq ft condominium apartments.

In the Clementi area, GRE Realty is marketing the sale of Park West Condominium through the expression-of-interest mode. So far, 75 per cent of owners have agreed to the sale.

The indicative price for the 633,638 sq ft site is $620 million to $660 million, inclusive of development charge of about $115 million. GRE Realty estimated that the breakeven price would be around $750-$780 psf.

Source: The Business Times, 26 July 2007

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