Tag Archives: En-bloc

Balestier Point may go en bloc

Balestier Point resize

Photo: balestier12011.blogspot.com

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.

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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.