The cooling measures haven’t dented the spirit of property owners looking to make most of en bloc sales.
Fragrant Gardens has become the latest property to join this race even as the realty industry is waiting to see first deal since Government announced new cooling measures. The site is located at Upper Paya Lebar Road.
The 37-unit owners of the property have listed it for a reserve price of S$65 million.
The freehold site encompasses an area of 38,576 sq ft and the owners are expected to earn between S$1.3 million and S$2.69 million if they manage to find a buyer.
Given the reserve price the land rate would translate to $1,204 psf ppr which will further reduce to S$1,094 psf ppr if 10% balcony bonus is taken into account which is of course subject to approval from the authorities.
Development charges aren’t payable for this site with 1.4 plot ratio.
Realty watchers say that the site has good redevelopment potential with the maximum GFA of 54,005 sq ft. This would allow redevelopment with potential for 71-unit yield.
Knight Frank, marketing agents for this sale said that Fragrant Gardens Condo has many incentives for the potential buyer.
There are several schools in the vicinity including Maris Stella High School, St. Gabriel’s Secondary, Paya Lebar Methodist Girls’ Primary and Paya Lebar Methodist Girls’ Secondary.
It is also near to the popular NEX Mega Mall which Serangoon MRT interchange stations found below and the freehold site is just 5 mins walk away to Bartley MRT Station. There are condos and landed homes around this site.
Knight Frank’s Director and Head of Investment and Capital Markets Ian Loh said that the asking price is competitive considering Sun Rosier which is nearby having successfully sold at S$271 million at a rate of S$1,325 psf ppr.
The site was picked up by SingHaiyi and Huajiang International in September 2017 earning the highest land rate for a site in Outside Central Region.
He added Fragrant Garden’s reserve price is ideal even the time of cooling measures for any mid-sized developer as it doesn’t expose them to high risk and offers scope for making healthy profit.
Mr Loh further said that the site would attract developers who have an appetite for low risk as no development charges are payable and there is great potential for redevelopment.
The tender for this site shall close on 4th of September.
Colliers International’s Head of Research (Singapore) Tricia Song said that 10 en bloc sales have begun their tendering process since the cooling measures were announced on July 6.
According to Song the players in the market are on a wait and watch mode to understand the effect of these measures and the first en bloc sale would be closely followed by everyone in the industry.