The freehold residential redevelopment site in Lorong J Telok Kurau Road presently seats two detached houses and a pair of semi-detached houses, which are to be sold collectively
CBRE announced on 14 June that it is launching for sale a freehold residential redevelopment site at 12, 12A, 20 and 28 Lorong J Telok Kurau Road. The sale will be by way of public tender; interested parties are invited to submit their offers by 29 July 2021 at 3pm.
Located off Still Road, the 23,579 sq ft freehold residential redevelopment site presently seats two detached houses and a pair of semi-detached houses, which are to be sold collectively.
Under the 2019 Master Plan, the site is zoned “Residential” with a plot ratio at 1.4 and a height control of up to 5 storeys. Subject to relevant authorities’ approval, the site can be re-developed to feature a brand new five-storey residential development accommodating up to 30 units based on the “100-sqm” guideline.
The indicative price for the freehold residential redevelopment site is S$30.6 million.
Including the development charges (DC) payable of S$249,028 to maximise the allowable gross floor area, the price will work out to be approximately S$935 per square foot per plot ratio. An addition of the 7% bonus balcony area will bring the DC payable to S$1.75 million, but which translates to a lower S$916 per square foot per plot ratio.
Mr Michael Tay, Head of Capital Markets, Singapore at CBRE, said, “We expect keen interest from developers and contractors who are seeking such occasional opportunities that are also of palatable sizes. The site will also appeal to private investors and family offices who are on the lookout for redevelopment opportunities at strategic locations to preserve their wealth.”
Mr Tay added, “The Telok Kurau precinct is one of Singapore’s most well-liked neighborhoods in Eastern Singapore, otherwise known as District 15. This is due to the area’s proximity to a wide array of popular F&B establishments, trendy bars, as well as lifestyle and recreational amenities at the nearby East Coast Park. Family home seekers are also drawn to the area, given the presence of several popular local and international educational institutions – including CHIJ (Katong) Primary School, Haig Girls’ School, Tao Nan School and St. Stephen’s School.”
The vicinity of the freehold residential redevelopment site on offer comprises a vibrant mix of colorful Peranakan shophouses and landed housing enclaves, while enjoying connectivity to the rest of the island via East Coast Parkway and Pan-Island Expressway.
In addition, the freehold residential redevelopment site will witness improved accessibility by 2023, with the upcoming Marine Parade MRT station on the Thomson-East Coast Line.
Mr Paul, chief officer at iCompareLoan, said that “although the Covid-19 circuit breaker is a dampener, the freehold residential redevelopment site in Lorong J is in a good location and is hard to come by.”
“It will appeal to niche investors who may want to redevelop the site or to preserve their wealth,” he added.
Since the 1960s, Telok Kurau has been a sleepy and tranquil suburbia in Katong, known mostly as a middle-class residential enclave. The suburb roughly covers Telok Kurau Road, which is intersected by several smaller roads: Lorongs G, H, J, K, L, M and N Telok Kurau; Jalan Baiduri; St Patrick’s Road; Joo Chiat Avenue; and Joo Chiat Place.
The charm of this area has been attributed to the presence of unimposing buildings: a mix of modest bungalows, terrace and semidetached houses as well as low-rise apartments that exist among coffeeshops and small businesses. Despite the thronging urban development in nearby Katong, the Telok Kurau area has managed to retain its charm.
Since the 1990s, new housing projects have altered the landscape of Telok Kurau, though not drastically. Low-rise buildings still dominate the landscape, with few tall condominiums in the area. New semidetached houses have sprung up and, together with freshly painted terrace houses, they constitute a notable feature in the changing landscape of Telok Kurau.
Telok Kurau is an established residential zone that grew from an old fishing village into a blissful suburban neighborhood. Despite being one of Singapore’s older districts, it happens to be very well-planned, having streets that run neatly parallel and perpendicular to each other.
The estate is populated by landed homes and shop houses, fostering a pleasant setting for community and family living. Making it even more ideal are the surrounding malls, schools, and various facilities, not to mention the nearby East Coast Park. That’s why Telok Kurau in District 15 is very appealing, both among property developers and home buyers.
Mr Ho added that given the land scarcity in Singapore, demand for commercial and residential properties in Singapore will continue to rise over the long term. He pointed out that Singapore continues to be a global financial centre and a trade hub with high livability scores – all of which attracts high net worth investors to the Republic. All these factors will inevitably fuel demand for real estate in Singapore he added.
Mr Ho believes that value buys in the property market right now are are landed inter-terrace houses where the per square feet price on the built-up area is usually less than $1,000 and commercial properties. But Mr Ho cautioned that the bigger challenge for buyers of commercial property is securing the best commercial loans.
“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.”