Ravi Chandran
The District 9 freehold residential block at 2, 4 and 6 Mount Emily Road transacted for $18 million
2, 4 and 6 Mount Emily Road comprising three adjoining 3-storey residential buildings have just been sold via a collective sale to ZACD International at SGD18m. This transaction of the District 9 freehold residential block marks the first collective sale of this year.
The District 9 freehold residential block sits on a total site area of 515.5 sq m (approximately 5,549 sq ft) with an existing gross floor area of 1,499.3 sq m (approximately 16,138 sq ft).
Under Master Plan 2019, the District 9 freehold residential block at 2, 4 and 6 Mount Emily Road is zoned for residential use at plot ratio 2.1.
Nestled in a tranquil enclave near Mount Emily Park, the District 9 freehold residential block enjoys an exciting location at the fringe of the city centre, within close proximity to the CBD and Orchard Road. The neighbourhood of the District 9 freehold residential block at 2, 4 and 6 Mount Emily Road is a vibrant mix of arts, heritage and cultural districts, and the property is well served by a wide array of amenities. The Little India MRT interchange serving the Downtown and North East MRT lines is a mere 200 m away, providing easy accessibility to all parts of Singapore.
Executive Director of Investment Advisory at Edmund Tie & Company, Ms Swee Shou Fern, commented: “The tender attracted very keen interest from developers and investors due to its prime location and bite-sized quantum. The 100% owners’ consent also provided the developer certainty in deal completion timeline. The sale price of $18 million reflects a land rate of $1,115 per square foot per plot ratio (psf ppr), with no development charge payable due to its high development baseline.”
Ms Kain Sim, Chairman of ZACD Group, said: “We are happy with the team’s success in clinching the site. This acquisition is in line with ZACD’s focus in acquiring properties with value added potential in prime locations. I see a great potential to develop this property into a unique offering for urban living.”
EDMUND TIE is also handling the sale of 6A/B/C Robin Drive and 48 Hillside Drive, with its tender closing on 3 March 2021 and 23 March 2021 respectively. They are also conducting an Expression of Interest exercise for 296 to 308 (even numbers only) Lavender Road, closing on 24 March 2021.
The vibrant en bloc sale market was checked with the introduction of the property cooling measures introduced by the Government in July last year. The Government said the property cooling measures were necessary to check sharp increase in prices, which could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply.
Some observers said that the en bloc sales market will be dampened by the cooling measures. As developers become wary of end-demand and are hurt by the 5 per cent non-remittable Additional Buyers’ Stamp Duty (ABSD) on land purchase, it is expected to have an impact on their offer prices.
Before the introduction of the property cooling measures, overall private property prices rose across most market segments, with the largest price surge seen in the Core Central Region and Outside of Central Region.
As developers’ existing stock continues to diminish and supply of completed homes remain low, many projects especially those in the CCR have raised prices of their unsold units, some by even double-digits this year. Private residential market continued to gain traction with individual re-sellers have also seized the opportunity of increasing their asking prices in light of the more positive market sentiment fueled by the recent collective sales frenzy.
The higher launch prices at some new projects have however slowed the buying momentum in the primary market and sales volume has dipped considerably quarter-on-quarter. While overall sales had slipped quarter-on-quarter, it rose marginally on a year-on-year basis.
Mr Paul Ho, the chief mortgage officer at iCompareLoan said, “despite the cooling measures, good prospects may appeal to developers especially because of its location.”
He added: “Whatever decisions owners facing en bloc sale make, it is better to make it fast so that the sale (or non-sale) can be concluded with minimal delay and maximum benefit to the owners.”
One way is to conduct a Collective Sales Agreement (CSA) as well as concurrently collect a “Non Collective Sales Agreement (NCSA)”, so that once a NCSA reaches 20%, the collective sale process is called off. There is really no point to drag on.
Mr Ho suggested that if one’s home is at risk of en bloc, the owner could consider a home loan where there is no locked-in penalty, but instead entails a higher housing interest rate cost. The next best option is to look for packages with a waiver of locked-in penalty due to sale of property. Such owners may contact a mortgage broker to assist them to find such packages with waiver of locked-in penalty.
Mr Ho added that if one’s home is at risk of en bloc, the owner could consider a home loan where there is no locked-in penalty, but instead entails a higher housing interest rate cost. The next best option is to look for packages with a waiver of locked-in penalty due to sale of property. Such owners may contact a mortgage broker to assist them to find such packages with waiver of locked-in penalty.
“With the right loan, the buyer can save thousands, if not tens of thousands of dollars,” he said. Adding, “which is why they would have to work with established mortgage brokers who can provide them free service.”
