Seven developers bid competitively for City Towers, a 17-storey property within District 10, and one of them has scooped it for a handsome S$401.1 million.
This has been disclosed by Colliers International, one of City Towers’ designated agents. The launch date for the public tender was Jan 4, and the deal was sealed on Feb 7, the tender’s closing date.
City Towers is on Bukit Timah Road, and it sits on 104,531 square feet of land. Its ultimate price, which has exceeded the property reserve price of S$355 million by a whole 13%, will see individual property owners take home amounts ranging from S$2.78 – S$11.5 million, depending on one’s property size.
The development comprises 77 apartment units and maisonettes, one penthouse and one shop.
Mr. M. Singh, the chairman of City Towers’ collective sales committee, has expressed delight on behalf of the property owners, noting the outstanding performance by their agents, Colliers International and Dentons Rodyk.
He says competition from other en bloc sales tenders was intense, especially within districts 9 and 10, yet the agents managed a very attractive price for them. He says the entire sales process was not only fast, but was handled professionally.
According to Ms Tang Wei Leng, Colliers’ managing director, City Towers drew lots of interest from serious developers because of its advantaged location, with popular schools and many social amenities nearby, and with the Newton and Stevens MRTs conveniently within reach.
Currently, the plot ratio for the City Towers site is 2.1. This is according to the 2014 Master Plan, which also zones the site as residential.
Nevertheless, the property has potential to hold 190 residential units with the unit sizes averaging 1,098 sq ft. each, if the developer utilizes the allowed capacity for 24 storeys.
To do this, no pre-application for feasibility study will be required to assess the development’s impact on traffic, as is sometimes the case.
Often when a new developer wants to increase the number of housing units significantly beyond the previous number, authority has to be sought prior to implementing the new plan.
As for City Towers’ land rate, it slightly beats that of Crystal Tower sold last November, because while the latter was S$1,840 per square foot per plot ratio (psf ppr), the former works out to S$1,847 psf ppr after incorporating S$3.5 million development charge. This rate is based on the anticipated gross floor area (GFA) of 219,516 sq ft.
Collier’s Ms Leng sees the City Towers site as providing an opportunity for the new developer to capture the market opportunities prevailing in the residential sector.
She notes that even as prices of residential properties rise, the new units can still be sold out if the developer works with adjusted unit sizes, so that there are more units being sold at relatively affordable prices.
She suggests S$3 million as a great price point for one apartment within District 10.