Two small condominiums suitable as sites for boutique developments were launched for collective sale on Tuesday, adding to the growing list of sites in the private en bloc market looking for a buyer.
One is Jansen Mansion, a 12-unit development near Kovan MRT station, and the other is Blossom Mansions, a development with 20 units in Lorong 37 Geylang. The owners are asking for S$22 million and S$32.8 million respectively.
All strata owners at Jansen Mansion have given their consent to sell. The 1,541.5 sq m site has 857 years left on its 999-year lease, with a plot ratio of 1.4 and a height limit of up to five storeys.
The residential site can be redeveloped into a 21-unit project, with each unit averaging about 100 sq m. An estimated S$1.14 million in development charge (DC) is payable to build up to the plot ratio of 1.4, and another S$1.74 million to build an additional 10 per cent of bonus balcony space.
Including the DC, the land rate for the Jansen Mansion site works out to S$996 per square foot per plot ratio (psf ppr), or S$974 psf ppr if the 10 per cent bonus balcony space is factored in.
At Blossom Mansions, 90 per cent of strata owners have signed the collective sale agreement, seeking a reserve price of S$32.8 million. This translates to S$1,262 psf ppr based on the maximum gross floor area (GFA) of 25,990.73 sq ft, with no development charge payable, given its high development baseline.
This 823.8 sq m site is zoned “residential/institution” under Master Plan 2014, with a plot ratio of 2.8 and a height limit of eight storeys.
The prospective developer could redevelop the site up to the existing GFA of 25,990.73 sq ft, or 34 units averaging about 70 sq m each.
The tender for Blossom Mansions closes on July 31, and that for Jansen Mansion, Aug 2.
Market watchers note that more collective sale tenders have closed without success or even without bidders, as many developers have replenished their land banks for the next two to three years.
There have been 30 or so en-bloc tenders that have yet to find buyers since the start of the year.
Developers’ immediate task now has shifted from buying land to substantially clearing off the units from the new developments on the site.
Most developers, in general, have replenished their land bank and are now in a position to wait or pick and choose.
On Monday, St Thomas Lodge, a five-unit development in prime district 9 held under a single ownership, was launched under an expression of interest exercise. Its indicative price of S$40 million works out to a land rate of S$2,293 psf ppr, inclusive of development charge for a more intensified use of the site. The 664.4 sq m site is zoned for residential use at gross plot ratio of 2.8 under the Master Plan 2014.
Adapted from: The Business Times, 4 July 2018