Owners of the 18 apartments at Trendale Tower, a residential property within the prime Cairnhill enclave, have agreed to sell their freehold property collectively, and they are asking for a price of at least, S$163.52 million.
The public tender was launched on May 16, 2018, and it is set to close on June 25.
The Trendale Tower site, which is situated along Cairnhill Road, has an area of 21,708 sq ft, and it was developed in the 1980s to hold housing units of around 3,207.7 sq ft on average.
Since the property’s verified gross floor area (GFA) is 72,690, at the property’s current reserve price, the land rate translates to around S$2,250 per sq ft per plot ratio (psf ppr).
The property’s marketing agent, Savills Singapore, estimates the breakeven price of the new development to settle at around S$3,000 psf.
According to the 2014 Master Plan, the gross plot ratio for the Trendale site is 2.8, and if the relevant authorities permit, the new development can go up to 36 storeys without attracting any development charge.
Suzie Mok, a senior director at Savills Singapore, says the Trendale site, which is located at the point where Scotts Road meets Cairnhill Road, is very attractive to developers, not just because the property is within the country’s Core Central Region (CCR), but also because it provides spectacular views all around.
She cites the Orchard skyline and the Goodwood Hill’s lush green as great selling points, especially considering the property owners’ asking price.
She sees the site as worth acquiring as the value for such high-end residential properties is on the rise.
The site is also well connected, as residents are able to easily access expressways as well as the Newton MRT Interchange station just a short walking distance away.
In February 2018, Cairnhill Mansions, which is in the neighbourhood of Trendale Tower, was scooped at a land rate of S$2,311 psf ppr.
While Cairnhill Astoria close by was also launch for collective sale at S$196 million, matching a land rate of S$1,964 psf ppr, inclusive of a development charge of S$16.34 million. Both properties are under freehold ownership.
According to Savills Singapore’s head of research, Alan Cheong, the country’s prime property prices are recharging, and they tend to be reaching the 2007 – 2012 level. Those that do not exactly match that benchmark are getting re-rated even higher.