A privatised HUDC estate in Hougang, Florence Regency, is sold to Logan Property for S$629 million.
Logan Property is a Singapore-incorporated subsidiary of the Hong Kong-listed Chinese developer. They bought the 336 unit development in Hougang Avenue 2 for S$629 million through a collective sale.
This is the second plot of land bought by Logan Property, which secured a site in Stirling Road with Nanshan Group earlier under the government land sales (GLS) programme at S$1.003 billion or S$1,050.7 per square foot per plot ratio (psf ppr).
The public tender for the en bloc sale of Florence Regency is closed on Sept 27 with three bidders who did not raise their bid prices to match the valuation of S$629 million. This is the first collective sale attempt by the owners of the development.
Owners are likely to receive gross sale proceeds of S$1.84-$1.89 million per unit.
The land price works out to be about S$840 psf ppr, after factoring differential premiums of S$288.6 million payable. The site area is about 389,000 sq ft and has a gross plot ratio of 2.8.
Florence Regency is near to Hougang MRT station and bus interchange, which is an interchange station for the planned Cross Island Line. It is also near Kovan MRT station in Upper Serangoon Road.
This collective sale follows the two other former HUBC estates in the area, Rio Casa in Hougang Avenue 7 and Serangoon Ville in Serangoon North Avenue 1. Serangoon Ville in Serangoon North Avenue 1 is sold to an Oxley Holdings-led consortium for S$706 psf ppr and Serangoon Ville is sold for S$860 psf ppr. The government also sold a site in Serangoon North Avenue 1 in July to Keppel Land and Wing Tai for S$965 psf ppr.
These three sites can generate more than 3,000 units. Florence Regency is expected to yield about 1,400 units.
The land price for Florence Regency is comparable to the average cost of nearby sites that were sold recently.
Residential sales momentum is good and there is quite a lot of supply in the area. The decline in property prices for the past three to four years provided an uptrend opportunity for the developers to leverage on.
Other Chinese players that have bought en bloc sites through the collective sales market this year include Kingsford Huray Development and a joint venture between Singhaiyi and Huajiang International Corporation.