Ahead of July’s cooling measures, Gilstead Mansion has relaunched of their collective sales at $65 million, a whopping $3 million discount from it guide price in June.
This new reserve price reduction puts the figures at $1,524.70 per square foot per plot ratio, with zero development charge.
It consists of 24-unit freehold developments sitting on a 35,751 square feet land area and a 42,632 sq ft gross floor area.
Gilstead Mansion is located around Steven-Chancery area. It’s one of 9 areas that faces new 100 sq m unit size rule.
Due to the current guideline of 70 sq m, only 56 housing units can be built on the en bloc site.
With the 100 sq m rule, it could yield just around 40 units
Teakhwa Real Estate marketing agent has confirmed that the (LTA) Land Transport Authority, in a written document, stated that the site does not require any pre-application feasibility study on traffic impact.
In the statement, Teakhwa Real Estate said that when compared to the exorbitant price of the neighbouring Dunearn Gardens ($1,962 psf), and the 99-year leasehold of Chancery Court, transacted at $1,610 per square feet, the expected land rate of the Gilstead Mansion is rather very affordable.
The statement reiterated that this collective sale presents a golden opportunity for developers to buy properties at very reasonably low prices, and develop quickly with the new planning guidelines of the Urban Redevelopment Authority.
The revised planning guidelines of the Urban Redevelopment Authority reduces the strain on infrastructure, as it allows for the increase of the average size of new residential flats outside the central area to at least 85 sq m.
It will be recalled that the areas currently facing the strict 100 sq m guideline includes Pasir Panjang, Stevens-Chancery, Kovan-How Sun and Marine Parade.
Other developments on the list are Balestier, Joo Chiat-Mountbatten, Pasir Panjang, Loyang, Shelford and Telok Kurau-Jalan Eunos.
As the Gilstead Mansion tender is set to close by 2 pm on November 22, Teakhwa Real Estate says that the owners of Balestier Regency are making plans to also reduce the reserve price to $190 million from its current price of $218 million.
This measure is aimed at attracting potential developers, as Balestier Regency, just like Gilstead Mansion, is among the areas affected by the 100 sq m guideline.