Category Archives: En-bloc / Collective Sales

Fairhaven apartment goes en bloc

A prime freehold residential development along Sophia Road in District 9 has launched its first attempt at a collective sale, revealed marketing agent JLL.

The 15-unit Fairhaven apartment sits on approximately 16,660 sq ft of land and is zoned residential with a gross plot ratio of 2.1 in the 2014 Master Plan.

More than 80 percent of the owners, by share value and strata floor area, consented to the collective sale.

They are seeking offers in excess of $45 million, or about $1,169 psf per plot ratio on the potential gross floor area, after factoring in the 10 percent bonus balcony space for which no development charge is payable.

Commenting, Yong Choon Fah, National Director of Capital Markets at JLL said: “The site site within the Central Area (which generally comprises of areas close to Orchard Road and Marina Bay), whereby the number of dwelling units to be built in a development is not controlled by the stipulated minimum size for residential apartments. URA’s new guidelines which took effect on 4 November 2012, impose an average size requirement of 70 square metres or 100 square metres for the whole island, except for the Central Area. As a result, the supply of ‘shoe-boxes’, as they are often referred to, has been significantly curtailed.

“Potential buyers can consider building small apartments of between 40 to 50 square metres or so, to capitalise on its location and the curtailed supply of one-bedroom or small two-bedroom units.”

Since 2013, there have been no development sites made available for sale in the area, noted Yong. The last one was URA’s Mount Sophia site (currently Sophia Hills), which was hotly contested with nine bids two years ago.

Situated near Dhoby Ghaut Interchange and MRT station, there are also many established educational institutions in the vicinity, including the School of the Arts (SOTA) and Singapore Management University (SMU).

The tender for Fairhaven closes on 1 July 2015.

Collective sale for Derby Court

Real estate firm Savills has launched Derby Court, a boutique freehold site located in the prime District 11 Novena enclave, for collective sale.

The 12-storey development (pictured) occupies a corner plot of approximately 1,719.3 sqm at 5 Derbyshire Road. The 35-year-old development consists of 20 apartments with an existing gross floor area of 4,932.61 sqm.

The site enjoys convenient access to Novena MRT station, Orchard Road and the central business district. It is also situated within 1 km of schools such as St Joseph’s Institution (Junior) and Anglo Chinese School (Junior), and is a short walk to three established malls – United Square, Velocity@Novena Square and Square 2.

The collective sale of Derby Court has an indicative price of S$68.28 million, or S$1,286 psf ppr based on the allowable Gross Floor Area of 53,094 sq ft.

The land rate would be lowered to approximately S$1,169 psf ppr including the 10 percent bonus gross floor area space allowable for balconies. The site can potentially accommodate up to a maximum of 70 new apartments averaging 753 sq ft with an estimated breakeven cost exceeding S$1,700 psf.

Suzie Mok, Senior Director of Investment Sales at Savills Singapore who is handling the sale, said: “Derby Court presents a rare and exciting investment opportunity. We expect the site to draw interest due to its locational attributes, established amenities and compact size. Sites with absolute price quantum of less than S$70 million for a high-rise 36-storey development are few and far between. This is a sweet spot to boutique developers in the present market”,

The tender for Derby Court will close at 3pm on January 20, 2015.