On July 16th, Knight Frank Singapore announced that Summer Green is up for a re-launch.
This follows a previous collective sale launch that didn’t succeed in January. During the first launch, the freehold residential redevelopment set the reserve price at $48.5 million.
Summer Green is a residential development site that has 24 apartments spread across 13 storeys. The site is located on a freehold area of 1360.7 sq meters (roughly 14,646 sq ft).
Moreover, the site is regularly shaped and zoned for residential use as per the stipulations of the 2014 master plan. The site also has a 30-meter convenient frontage and approved plot ratio of 2.8.
Based on the time of the re-launch and features surrounding the site, owners expect offers for the site that are over $48 million.
The reserve price is now decreased by $500,000 in comparison to the first launch. Initially, the land rate was S$1,188 psf per plot ratio (ppr) complete with the development cost $253,000. Currently, the land rate under the new reserve price is $1,178 psf ppr.
The attractive features adding value to Summer Green include; its location along Balestier Road. This makes it the heart of the area since most amenities are nearby.
Besides, a short drive from the site leads to Novena Square and the United Square. The central business district and the orchard road shopping belt are also not far from this area.
Furthermore, the views from the site show landed houses on Boon Teck road. The kicker for this property is that it’s accessible by major highways like the Central Expressway and Pan-Island Expressway.
The freehold site is also 700m away to Toa Payoh Central, Bus interchange and MRT station.
According to the Head of investment and capital markets and Executive Director at Knight Frank Singapore, Mr. Ian Loh, the current reserve price matches other recent en bloc sales.
Kemaman Point sold en bloc to Soilbuild Group Holdings for $143.88 million which was a win for Knight Frank Singapore, the marketing agent.
The collective sale process of 89-unit residential development site along Balestier road is a great success. Knight Frank Singapore reported that each of the owners would amass $1.4 million to $2.32 million from the collective sale.
From this trend, Balestier is a prosperous location that is getting a make-over. Mr. Loh also said that the demand for redevelopment is high since the Gross Development Value for the site is currently below $100 million.
The Zhongshan Mall, Health City Novena, and Ibis Singapore Novena are set to open in Balestier.
Mr. Loh further noted that the buyer stands to set up the highest allowed Gross Floor Area of about 41,010 sq ft. This can be arranged into 54 units that are approximately 753 sq ft only after approval by the Urban Redevelopment Authority.
Knight Frank Singapore is confident that the offer price for the Summer Green freehold residential site for redevelopment off Balestier road is acceptable and falls under risk-free procurement for mid-sized developers.
The closing date for tenders of Summer Green freehold site will be on Monday, 20th August 2018.