Ravi Chandran
Cascadale is poised to benefit from the extensive development plans surrounding Changi Airport.
JLL on May 28, announced the launch of the tender exercise for Cascadale, a 134-unit collective sale site at Upper Changi Road East. This is the first time the owners of the 25-year old development are embarking on a collective sale exercise.
Under the 2014 Master Plan, the freehold 167,528 sqft site is zoned ‘Residential’ with a gross plot ratio (GPR) of 1.6 and an allowable building height of up to 12 storeys or 45 metres Above Mean Sea Level (AMSL), subject to approval from the relevant authorities.
Situated along Upper Changi Road East and some 350 metres from the Upper Changi MRT station, the District 16 property is located close to the Singapore University of Technology & Design (SUTD), Changi City Point, Changi Business Park, Singapore Expo and Changi Airport. Upper Changi MRT station is just two train stations from Changi Airport and the Jewel.
En Bloc Sales Process Singapore – A Definitive Step-by-step Guide
“Exciting developments are in store for the areas surrounding Changi Airport. One is on the back of the iconic Jewel at Changi Airport, which received significant global attention when unveiled last month. The other is surrounding the upcoming mega Terminal 5, which is set to facilitate the doubling of tourist arrivals,” said Mr Karamjit Singh, Senior Consultant at JLL.
“The recently unveiled draft 2019 Master Plan also outlines plans to transform the entire Changi East area into an innovative lifestyle and economic cluster,centred around aviation-related businesses and industries. The future Changi City is set to comprise the areas surrounding SUTD, Changi Business Park, and a new Changi East Urban District. In the long-run, all these would eventually form a complete ecosystem where residents can work, live, play and learn”.
Mr Singh added, “As these plans take form, demand and values for homes in this area are expected to rise by 10% to 20% over the next three to five years. Already around 30,000 professionals work in the massive cluster of over four million square feet of space at Changi Business Park. On top of that, there is absolutely no new condominium project in District 16 in the pipeline at all!”
District 16 includes areas such as Bedok, Upper East Coast Road, Sennett Road, Eastwood and Tanah Merah. Aside from a small site on Upper East Coast Road sold in 2017, there has been no freehold residential site sold since 2010.
Cascadale may be redeveloped into a condominium project comprising up to 292 units with an average size of 85 sqm per apartment, subject to approval and payment of development charges. The location is also attractive for redevelopment into serviced residences, should the authorities approve it.
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The owners’ reserve price of $270 million translates to a land rate of approx. $1,071 psf ppr after including an estimated development charge of about $17 million, before factoring any bonus gross floor areas.
“Whilst residential en bloc transactions have practically come to a halt since last July’s cooling measures, we believe Cascadale stands a reasonably good chance of securing a buyer owing to all these unique factors and its reasonable reserve price of $270 million,” concluded Mr Singh.
The tender for Cascadale closes on Wednesday, 10 July 2019 at 2.30 pm.
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Mr Paul Ho, the chief mortgage officer at iCompareLoan said, “how the collective sale attempts of properties like Cascadale do, will determine if the Government’s new cooling measures still have a chilling effect in the property market.”
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.
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.
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