Peak Opal, which is part of the property development company, Kheng Leong, owned by the famous banker, Wee Cho Yaw, has acquired Olina Lodge in District 10 for S$230.9 million.
The 67-unit property, which is situated along 15 Holland Hill is residential and freehold ownership.
The property reserve price was S$220 million, which means Peak Opal’s offer price was 5% higher than the property owners anticipated.
The successful collective sale that saw the firm associated with United Overseas Bank (UOB) acquire the 28yr old property, closed on April 19, 2018, after having been launched on March 21.
The site on which the Peak Opal property sits is 84,289 sq ft in size, and at its sales price, the land rate translates to S$1,712 per sq ft per plot ratio (psf ppr).
This information was released by Singapore Realtors Inc (SRI) on April 20, 2018.
According to SRI’s managing director, Tony Koe, the site’s plot ratio is 1.6 and the height allowable for a new development according to the 2014 Master Plan is 12 storeys.
As such, the new developer can maximize usage to create 148,348 sq ft of gross floor area (GFA) inclusive of 10% bonus balcony area.
At present, the apartment sizes at Olina Lodge range from 1,281 sq ft to 2,766 sq ft, and on that basis, individual unit owners are bound to receive amounts ranging from S$3m – S$5m each once the sales process is through.
Andy Gan, who is head of investment sales at SRI, says Peak Opal could put up an exclusive development at the Olina Lodge site, where occupants can enjoy the tranquillity of the area and the panoramic views.
This is because the property is situated at a quiet hilltop enclave.
Olina Lodge is a condominium along 15 Holland Hill in District 10, within the Core Central Region (CCR), and it sits on an expanse, 84,288.95 sq ft.
Owners of this freehold property are eager to sell it en bloc, and they are asking for a minimum price of S$220 million.
This is their third attempt to sell collectively, and the public tender is set to close on Apr 19, 2018.
According to the appointed marketing agent, Singapore Realtors Inc (SRI), the gross plot ratio is 1.6. That puts the current gross floor area (GFA) at 134,862 and the land rate at S$1,631 per sq ft per plot ratio (psf ppr).
The property being in a location with a high development baseline, no development charge is expected, and if the new developer utilizes the 10% allowed bonus balcony area, the land rate is bound to drop up to around S$1,483 psf ppr.
SRI observed that in comparison to land rates from recent collective sales of District 10 properties, this one of Olina Lodge is pretty attractive.
Currently the Olina Lodge condominium has 67 units, but the new developer could build almost double that number, probably 128 units of average size, 1,000 sq ft.
Of course, this would be subject to relevant approvals. Tony Koe, the managing director at SRI, expressed confidence that the tender is going to attract great interest from prospective buyers, developers keen on replenishing their land banks, as well as new market entrants eager to have a share of Singapore’s residential market.
According to analysts from the DBS Group, developers are likely to become selective in their purchases although their appetite for development sites is currently strong.
This is because it is apparent supply of property is on an upward trend, with around 30,000 units likely to be launched within the period, 2018/19.
Even Karamjit Singh of JLL expects the property market to slow down in the second half of 2018.
2018 has seen 20 collective sales go through successfully, yielding S$6.2 billion, although there were other tenders that closed without suitable bids.
Those sales proceeds represent 65% of total yield from the entire 2017 collective sales, which was S$8.7 billion from 30 tenders.