Tag Archives: Collective Sale

Shunfu Ville tries to en bloc again

Shunfu Ville has been re-launched for collective sale at the same reserve price of $688 million, or $791 psf ppr, said marketing agent JLL.

This is the second time that the 358-unit residential development built in the 1980s has gone en bloc after more than 80 percent of the owners agreed to the sale.

The first attempt at a collective sale in September 2015 attracted expressions of interest from two developers, but PropertyGuru understands that the offers were rejected for being too low.

Situated in the Bishan/Thomson area, the 408,927 sq ft site is zoned residential under the 2014 Master Plan and could yield over 1,100 units with an average size of 1,000 sq ft.

Yong Choon Fah, National Director of Capital Markets at JLL, noted that while the residential market continues to be bogged down by the property cooling measures, some positive signs are now emerging.

“With price moderation working its way alongside the continued rise in wages and the stabilisation of HDB flat prices, private housing has become very much affordable. We estimate that it now takes about 5.6 years of income to buy a home, close to the 5.9 years in 2003, which was a recession year. At the peaks of the market in 1996 and 2008, home prices were equivalent to nine to 10 years of income.”

With this, she reckons that developers will continue to press on with replenishing their land banks.

Moreover, there has been no Government Land Sales (GLS) site released for sale in the area since the Lorong Puntong land parcel (Thomson Impressions) was awarded to a Chinese developer in October 2014.

The Shunfu Ville site is also close to established schools, shopping malls and two MRT lines.

At $688 million, the estimated breakeven cost for the successful buyer stands at around $1,250 psf, with the new units expected to fetch between $1,400 psf and $1,450 psf, said JLL.

The tender for Shunfu Ville will close on 10 March 2016.

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.