SINGAPORE – A freehold residential development site in District 12 is up for sale by public tender at a guide price of $52 million. This works out to a land rate of $1,294 per square foot per plot ratio (psf ppr).
Named Kingsley Mansion, the property is a ten-storey residential development with 18 apartment units.
Its homeowners in 2018 launched a collective sale of property at the reserve price of $45.5 million. The tender closed without a buyer.
Kingsley Mansion sits on a rectangular plot of about 14,350 square feet (sq ft) with a road frontage spanning about 30 m along Boon Teck Road, and has a depth of about 45 m.
The site is zoned for residential use under the Urban Redevelopment Authority Master Plan 2019, with an allowable gross plot ratio of 2.8. It has a building height control of up to 36 storeys.
Exclusive marketing agent CBRE on Tuesday (Mar 7) said that no land betterment charge (LBC) is payable to redevelop the site given its high development baseline.
This lowers the land rate to about $1,251 psf after accounting for a 7 per cent bonus gross floor area for balconies, as well as an estimated payable LBC of $1.8 million.
Michael Tay, head of capital markets in Singapore at CBRE, said he expects the property to garner strong interest from developers looking to replenish their land banks.
The Kingsley Mansion site offers potential developers an “exceptional opportunity” to build a high-rise freehold residential development with up to 37 units, Tay said.
Tay also anticipates strong buyer interest for projects in Balestier considering how Verticus, which was the last new launch in the area, was fully sold last year.
“Given the limited supply of freehold housing stock in the Balestier area, the launch of Kingsley Mansion is extremely timely for developers to leverage on this tight supply situation and present to the market an enticing product that will appeal to both homeowners and investors,” he said.
“With low-rise buildings on both the front and rear of the site, the units in the new development could potentially offer respectable city views and (a) decent sense of spaciousness.”
The public tender exercise for Kingsley Mansion will close at 3 pm on April 12. THE BUSINESS TIMES
