Owners of Cairnhill Astoria, a freehold development constructed in 1983, are asking for at least S$196 million in their collective sale tender launched on Thursday, May 17, 2018.
The District 9 property joins two others in the vicinity, Cairnhill Heights and Cairnhill Mansions, which have recently been sold collectively at land rates of S$1,914 and S$2,311 per sq ft per plot ratio (psf ppr) respectively.
The public tender for Cairnhill Astoria is set to close on June 27, 2018.
This Cairnhill Rise apartment sits on an expanse 38,615 sq ft in size, and it comprises 36 housing units within one high-rise tower and one low-rise block.
However, according to the 2014 Master Plan, the new developer has room to increase the units to 200, as long as the average size is kept at 540 sq ft.
Of course, such an increase would require prior approval from relevant authorities. The gross plot ratio formally allowed is 2.8.
At the proposed reserve price, the land rate for Cairnhill Astoria is S$1,964 psf ppr, which is within the current range similar properties in the region have been sold for.
This land rate is inclusive of an amount of S$16.34 million, which is representative of the estimated development charge.
According to the collective sales committee’s vice-chairman, Mr. Paul Kwek, property owners are hopeful the sales outcome will be great, considering there has been improvement in the market conditions.
They are even more confident being guided by Colliers International, their marketing agent, a firm that has handled other collective sales deals in the region with great success, including City Towers, Pearl Bank Apartments and Tulip Garden.
They have help and sold 3 en bloc sites so far in 2018, totalling amount of over $2 billion.
Housing units at Cairnhill Astoria range in size from 700 – 6,060 square feet each, and if this collective sale is successful, the least a unit owner is bound to take home is S$2.275 million, while others could receive a decent S$14.261 million for a single unit.
There is much hope for this sale considering the site is well connected with MRT stations close by and alluring due to the presence of popular schools around.
Moreover, as Ms Tang Wei Leng, MD at Colliers, observes, developers’ interest has shifted to prime sites, and away from the suburbs.
As evidence, she notes that properties in the prime districts 9 and 10 have cumulatively fetched more than S$3.85 billion from January – mid-May this year, while the sales revenues from collective sales in those areas the entire 2017 only reached S$870 million.