The freehold three storey residential building along Serangoon Road is being sold at a compelling guide price of $1,045 per square foot per plot ratio
On 14 July, CBRE presented an investment opportunity to acquire a 100% ownership in a freehold three storey residential development located at 543, 543A, 545, 545A Upper Serangoon Road. As the exclusive marketing agent, CBRE is conducting the sale via a public tender exercise, which will close on 17 August 2021 at 3pm.
The freehold three storey residential building currently comprises four strata-titled residential units of some 8,928 square feet in total gross floor area, subject to URA’s verification. It sits on a rectangular land plot of approximately 4,072 square feet and enjoys a prominent frontage of approximately 18.3 metres on Upper Serangoon Road, the main thoroughfare of District 19.
Under the 2019 Master Plan, the site of the freehold three storey residential building is zoned “Residential” with a gross plot ratio of 1.4.
Indicative pricing is $7.6 million and the development charge payable to build back to its existing gross floor area of 8,928 square feet is estimated to be approximately S$1.73 million, subject to the authorities’ confirmation on the development baseline and review of DC rates every March and September. All in, this will work out to about $1,045 per square per plot ratio.
Mr Michael Tay, Head of Capital Markets, Singapore at CBRE, said, “We expect keen interest from end-users such as developers and contractors who are seeking such occasional opportunities that are of palatable size and investment quantum. The subject property will also appeal to private investors and family offices who are on the lookout for well-located freehold buildings to preserve their wealth.”
The freehold three storey residential building can be redeveloped into a serviced apartment development at its existing gross floor area of approximately 8,928 square feet and a building height of up to five storeys, subject to relevant authorities’ approval. Dependent on authorities’ evaluation, the freehold three storey residential building may also be suited for co-living business, childcare centre, or hostel operators.
Mr Tay added, “At $1,045 per square foot per plot ratio, including development charge payable, the indicative pricing is compelling when compared to recent transactions. Most recent comparable transaction includes 2,4 and 6 Mount Emily Road which changed hands in March 2021 for S$1,115 per square foot per plot ratio.”
Situated in front of a low-rise residential enclave along Upper Serangoon Road, the freehold three storey residential building is a stone’s throw from Serangoon MRT Interchange and NEX shopping mall. The other nearby landmarks include Braddell Heights Community Hub, Yangzheng Primary School, Chomp Chomp Food Centre, myVillage at Serangoon Garden and Serangoon Gardens Country Club.
Mr Paul Ho, chief officer at iCompareLoan, said: “the offer of the freehold three storey residential building along Serangoon Road is a unique development site as it offers the buyer several redevelopment options.”
Mr Ho added “Given that the area is relatively tranquil and private, surrounded by various landed houses, keen interest can be expected from investors or boutique developers focusing on quality niche developments. The site will also appeal to owner occupiers who are in search for places suitable for multi-generation living. What’s more, the $1,045 per square per plot ratio is very attractive.”
The immediate neighborhood of the unique residential site comprises mainly landed homes. It is approximately an 15-minute stroll to both Lorong Chuan and Bartley MRT Stations, In its vicinity are also good educational institutions like include Rosyth School, Maris Stella High School, Paya Lebar Methodist Girls’ School, Nanyang Junior College, Serangoon Junior College, as well as an Australian and a French international school.
The sale comes at a time when the homebuying activities remain healthy through the Phase 2 (Heightened Alert) period, reflecting the underlying positive outlook of the economy. Private home prices could rise 6% in 2021, tracking GDP growth.
Mr Ho added, “the low interest rates are also affecting the positive market sentiment. Buyers looking to invest in residential properties at this time must really do their homework and choose a loan plan which is the best for them. If they do not do their homework properly, they can become saddled with a loan which they may not be able to service once the interest rates increase.”
“It is best to speak to professionals like mortgage consultants to see which is the best loan for you. It is also good to use mortgage calculators, some of which are available online, to do your own research,” he said.