ST : Two developments up for collective sale

Oct 26, 2010

Two developments up for collective sale

By Esther Teo

CARDIFF Court, off Lorong Chuan, is being launched for collective sale today with a $25 million price tag.

The 21-unit project, on a 43,491 sq ft residential leasehold site, can be redeveloped into a project of up to five storeys.

The lease has 72 years left. The potential gross floor area (GFA) of a new project there is about 60,887 sq ft.

Marketing agent Teakhwa Real Estate said the District 19 property is expected to fetch about $25 million.

That works out to $519.50 per sq ft per plot ratio (psf ppr) - including estimated development charges of $6.63 million to top up the lease to 99 years.

At that price, the break-even price for a developer is estimated to be about $860 psf to $900 psf.

That means prices in excess of $1,100 psf can be expected at launch, Teakhwa said. About 96 apartments of about 600 sq ft each can be built, it added.

Units at nearby 99-year leasehold project Hong Leong's The Scala were recently sold for between $1,100 psf and $1,500 psf while another project in the area, Kovan Residences, has also sold above the $1,000 psf mark.

'The new condo project should appeal to both home buyers and investors alike - specifically to the upper middle class Singaporeans living in the Serangoon area and foreigners looking at well-located residential projects,' Teakhwa said.

Another development, Marine Point, a freehold 18-storey residential block at 95 Marine Parade Road, was launched for collective sale last Wednesday at an indicative price of about $110 million. Marine Point consists of 30 apartments and two penthouses on a 51,185 sq ft site. Its potential GFA is 107,489 sq ft.

This works out to about $1,116 psf ppr, including an estimated development charge of $10 million.

It can be redeveloped to accommodate about 90 to 100 apartments averaging 1,000 sq ft each, said marketing agent ERA Asia-Pacific associate director Eugene Lim.

In both cases, the requisite more than 80 per cent of owners by share value and strata floor area have signed the collective agreement.

Both tenders will close on Nov 18.