Balestier Point (pictured), a mixed-use freehold development, may be put up for collective sale for approximately $250 million to $350 million, or around $1,337 to $1,872 per sq ft per plot ratio (psf ppr), reported The Straits Times.
The property’s owners appointed an eight-member collective sale committee in October 2015 and ERA Realty as the marketing agent in January this year. However, they have yet to set the date for an extraordinary general meeting to obtain the owners’ approval.
Completed in 1986, the 62,315 sq ft property comprises an 18-storey residential block and a two-storey retail podium with basement. The site is zoned commercial and residential under the 2014 Master Plan, with a building height limit of 30 to 36 storeys and a plot ratio of 3.0.
Owners may be motivated to sell considering the above-market premium for the said property. Last month, a 1,119 sq ft apartment located on the ninth floor was sold for around $1 million or $900 psf.
They are also banking on the fact that the Balestier area has been undergoing rejuvenation, with the completion of the integrated hotel-park complex comprising Zhongsan Park, Zhongsan Mall and the Days and Ramada hotels in 2014.
“It is within the Novena medical hub area and we are exploring the possibility of applying for change of use, subject to approval by the authorities,” said ERA Realty agent Stanley Koo.
Property consultancy CBRE noted that the most recent collective sale within the area was Skysuites 17, formerly Diamond Tower, for around $49.6 million or $582 psf ppr in April 2010.
“Due to the cutback on residential land offered through the Government Land Sales programme, developers may want to look at collective sales as an alternative source of land. At the end of the day, the most important thing is to bridge sellers’ and buyers’ expectations,” said Desmond Sim, Head, CBRE Research, Singapore and South East Asia.