It Seems Like Small Sites Attract the Most Attention in the Collective Sale Market
Singapore’s infamous red-light area Geylang is witnessing unprecedented activities this year. Several smaller developers are showing interest in enbloc sales in Geylang.
The freehold property Yuen Sing Mansion located alongside Lorong 13 Geylang, was recently bought by East Asia Geylang Development through a private treaty.
Though it was initially intended for S$17 million, the deal was finally sealed for S$15.2 million. Making it the first successful en bloc sale in 2020.
The enbloc sale notice for Yuen Sing was launched by tender in September 2018 by the marketing agent JLL.
The residential property, Yuen Sing is a 4-storey developmental site consisting of 9 apartments that are constructed on regularly sized plot.
In 2018 when the first bid was released, the owners had expected more than S$17 million for the site which works out to around S$779 psf ppr or per square foot per plot ratio.
Alternatively, this meant that when the 10% balcony bonus was calculated, the psf ppr stood at S$753. The projected development charge stood at S$1.24 million.
This 7,868 square feet site is earmarked as a residential or institutional zone according to the 2014 Urban Redevelopment Authority Master Plan.
The enbloc site has a gross plot ratio of 2.8 and the permitted number of storeys is currently eight, though that is subject to the fact that the height has to be at least 26 metres above mean sea level.
These details were shared by the media in 2018. Currently, according to URA’s recent outline permission grant, a developer can configure the gross floor area of 24,235 square feet to build at least 29 apartments.
Thomas Toh the lawyer of CTLC Law Corp, who is representing the sellers said that since the 2018 tender was unsuccessful, the owners continued to look for buyers while many agencies continued to sound them out.
According to Mr. Toh, the owners were very happy that a buyer was finally found this time.