Tee Land, one of the renowned property development company is purchasing Casa Contendere which is in the Gilstead Road, at a valuation of $72M.
The property developer is paying $1,638 for per square foot in per plot ratio that is PSF PPR. The price includes an estimated development charge of $15.1M.
The purchased property, Casa Contendere is situated aside the Newton MRT in District 11 region. It is a 4-storey building with eleven units. The overall area of the estate is 37,972 square feet with a plot ratio of 1.4.
The holders of each unit are going to get $5.9 Million to $7.5 Million depending on their owned unit size. Among these eleven units, the Keck Seng Group owns six units.
William Gan Realty supervised the private deal of the Casa Contendere’s collective sale. The Strata Titles Board is not playing any role as all the owners have already agreed to sell their units.
According to the correspondent of the Singapore Exchange, Tee Land has agreed upon eleven option-to-purchase agreements for the acquisition of Casa Contendere.
The statement of Tee Land is about their vision to complete a certain number of residential flats in this region. They will get the full acquisition in February, 2018. The redevelopment process will end up by making seventy units. Each of these units will cover about 753 square ft on average.
In the last September, an announcement came from the same property developer, Tee Land. They bought 6 Townhouses near Upper Thomson Road in Seraya Crescent. It cost the company $25.74 million in a similar collective sale. Including the development charge, Tee Land purchased 24,069 Square Feet at a rate of $931 per square foot per plot ratio.
In the last year, six hundred units were sold in this manner. National Development Minister, Lawrence Wong has responded in the parliament to Lim Wee Kiak about this matter. He stated that such collective sales will not raise the bar of the house prices. It will happen because of the market’s natural demand-supply mechanism.
Minister Wong told that any developer will be charge with stamp duty only if it cannot build and sell units within five years after the property acquisition. In his statement, he clearly mentioned about ABSD, the Additional Buyer’s Stamp Duty.
Now, ABSD gets 15% of the total purchase of any site. The Minister is optimistic that this percentage may help to maintain a reasonable price for the developers during selling units.
In the meantime, collectively bought sites will be redeveloped and new houses will be available in the next year or the following years. He added a note that this addition can increase the supply and keep the price reasonable considering the competitive market for developers.