Affinity a new residential development at Serangoon made a grand start to its Phase I sale, selling 112 units during the last weekend between June 2 and 3.
This was a part of the 300 units that were offered in Phase I. The property has been developed by a consortium with Oxley Holdings which is listed at the mainboard leading it.
According to an official statement by the developers the 112 units sold so far earned them S$1,575 average price psf (per square foot).
The company added that citizens of Singapore comprise bulk of the buyers as they bought 80% of the units with rest being permanent residents of Singapore and also foreign nationals.
The sales have been even for all the different types of units that Affinity has on offer.
Affinity Condo is former Serangoon Ville site which sold en bloc in 2017 to Oxley led-consortium. The consortium has bought the site in a deal in July 2017 at a land price of S$835 psf ppr (per square foot per plot ratio).
Oxley holds 40% stake in the consortium while the rest of the partners that include Apricot Capital, Lian Beng Group and Unique Invesco Pte Ltd hold the remaining stake in the development split equally between the three.
While Apricot is Super Group’s private investment firm Unique Invesco is KSH Holdings’s indirect associate with 37.5% stake in the company.
The new development has a GFA of 77,235 sq m and going by the current price trends a development value in tune of S$1.4 billion.
The 99-year leasehold site comprises of seven blocks. When completed it would have 1012 units that would offer buyers the choice from one-bedroom units to four-bedroom units including 40 strata landed homes.
CEO and Executive Chairman at Oxley Ching Chiat Kwong is confident about the prospects of Affinity and believes that it would offer buyers a great location and lots of facilities and amenities.
According to him the development has made smart use of space and would be attractive to new homebuyers.
He is confident that many of Serangoon Ville’s former residents would choose this property as they are familiar living in this area and this is a good opportunity for them to upgrade their lifestyle and also build an asset for their next generation.
The project site is 12-minute bus ride from the NEX Shopping Mall which is adjacent to the Serangoon MRT interchange. Hougang Mall is also about 20 minute’s bus-ride from the site.
The residents would also have access to many other amenities that include the Serangoon Community Park, Serangoon Gardens Market and myVillage.
Serangoon Ville, a former privatised HUDC estate which located in the Serangoon North Avenue 1, was Sold to Oxley Holdings Singapore in a En Bloc sale for S$499 million.
They’ve been expecting offers between S$400 million up to S$430 million.
So far, they are already seven properties transacted for collective sale this year with a total value of S$2.5 billion which is greater than the number of deals made last year with a total amount of S$1 billion.
With the good performance of the collective sale market, creating few more millions are expected for the rest of the year in the midst of transactions-led property recovery and limited grabs for state tenders.
Serangoon Ville New Owners
Oxley Holdings Singapore owns 40 percent stake of the group while the remaining part was acquired by Apricot Capital, Lian Beng Group and Unique Invesco Pte Ltd.
Unique Invesco Pte Ltd is 37.5 percent KSH Holdings’ indirect associate while Apricot Capital is a private investment firm of Teo family’s Super Group.
The speculation was already widespread that the consortium led by Oxley Holdings will perform an essential part on the public tender presented in the Serangoon North Avenue 1 site which is under the government land sales programme. The tender is expected to close on Thursday.
Earlier this year May 2017, four companies namely Oxley Holdings, Apricot, KSH Holdings, and Lian Beng Group made a team in order to acquire Rio Casa which is a former HUDC estate situated in Hougang. The team had obtained Rio Casa in a collective sale worth S$575 million.
The asking price of the Serangoon Ville is translated to S$835 per square foot per plot ratio wherein S$195 million is the estimated differential premium to be paid to the state for a top-up.
This will refresh the tenure years of the property to 99-year lease and also for intensifying the site that measures 296,913 square feet to a gross plot ratio of 2.8.
The owners of the units in Serangoon Ville will take an average amount of S$2 million each which is according to ERA Realty that brokered the deal. Serangoon Ville has a total of 244 units that was completed in 1986.
The key considerations of the bid were the locational attributes said Ching Chiat Kwong, the executive chairman and chief executive of the Oxley Holdings.
He added that around 1,200 units are expected to be built in the area that will provide people with affordable condominium housing.
Serangoon Ville is particularly close to Hundred Palm Residences, which is an executive condominium that has 531 units. It is situated along Yio Chu Kang Road and was sold out on Saturday within seven hours.
Tang Wei Leng, the managing director of Colliers International Singapore had described the asking price of Serangoon Ville as bullish and aggressive while reflecting the sentiment for the property market in Singapore.
The key executive officer of ERA Realty, Eugene Lim, said that this serves as a sign that developers view that the down cycle of the property market is about to end.
With the active expansion of Oxley outside Singapore in the recent years, it only shows that Oxley Holdings made a swift move to show again its participation in the Singapore market.
As a matter of fact, Oxley had already acquired three plots this year.
Aside from acquiring Rio Casa through a consortium, Oxley had also successfully obtained a property located at 494 Upper East Coast Road last May that cost S$10.5 million.
This month, the company has acquired a freehold development in 231 Pasir Panjang Road for S$121 million which is for residential redevelopment.
Tan Hon Boon, the regional director for markets of JLL said that the en bloc fever will continue and keep rising because developers are still in need of land.
It seems that the second-half 2017 GLS is not yet enough to satisfy their needs. Developers are interested in former HUDC sites because of their locations that are perfect for upgraders said, Mr. Tan. As you can see, the majority of the end buyers consist of upgraders.
The owners of Florence Regency in Hougang, another privatized HUDC estate, together with Amber Park, a freehold condominium, have already acquired 80 percent consent for the collective sales agreement. The two projects are being marketed by JLL.
Last Wednesday, Knight Frank said that the owners of Dunearn Court, a 12-unit freehold development located in the prime of District 11, has an asking price of S$38.8 million. The tender of Dunearn Court will be launched 27th of July. The price of the development translates to a land rate of S$1,443 psf ppr.
Ian Loh, Knight Frank’s executive director and head of investment and capital market noted that the redevelopment sites are now getting in demand, mostly the boutique redevelopment sites that have a gross development value of below S$100 million.
Mr. Loh also said that the buyer of Dunearn Court can possibly build a maximum permissible gross floor area of around approximately 26,884 square feet into 32 apartment units having an average size of 753 square feet that will depend on the approval of the Urban Redevelopment Authority. The tender for the development is expected to close on September 6.
On the other hand, Villa D’Este condominium, a freehold development in Dalvey Road, is already up for sale and was launched last week by CBRE. The owners of the units are asking for S$96 million.
The condominium consists of 12 apartments located in the prime District 10. The asking price of Villa D’Este condominium translates to S$1,730 per square feet on the land area of 55,480 square feet.
Owners of the Tampines Court will receive an amount of S$1.7 million from the En Bloc sale which sold for $970 million.
With the recovery of the en bloc sale market, owners feel more confident to sell their units thinking that they can make a bonus out of their old homes.
The speedy owners of Normanton Park has signed the collective sale agreement with an asking price of S$800 million that is the same with what they have imposed during its initial attempt in October 2015.
Owners of the Pearl Bank Apartments which is located in Outram area are looking for a reserve price of S$728 million. This is an iconic development that consists of 288 units.
On the other hand, a news report from PropertyGuru, an online portal, said that the owners of the Lakepoint condominium have already formed a collective sale committee.