Jansen Mansions in Kovan Area put up for collective sale at reserve price of $19.8 Million
PropNex announced on 17 February that Jansen Mansions at 25 Jansen Road in the Kovan area will be put up for collective sale for $19.8 million via public tender on 18 February 2020.
More than 90% of the owners at the 12-unit Jansen Mansions have given their consent to sell the property and have lowered the reserve price to $19.8 million from the $22 million that they had asked for during their first attempt at selling the development en bloc in 2018.
Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “Following the unsuccessful collective sale attempt in 2018, the owners are determined to sell the property this time and have reduced the reserve price. We believe the land rate for the Jansen Mansions plot is very attractive in comparison with the firm land bids that were tabled in public land tenders last year. Given the site’s bite-sized quantum and good location attributes, we expect to see healthy interest from developers and new entrants who are looking to replenish land inventory as well as create a boutique housing development that will appeal to local buyers, including HDB upgraders.”
The reserve price for Jansen Mansions of $19.8 million translates to a land rate of $879 per square foot per plot ratio (psf ppr), inclusive of the development charge and 7% bonus balcony space.
Jansen Mansions – in District 19 – sits on a site spanning 1,541.5 sq m (approximately 16,592.7 sq ft) and has a 999-year leasehold tenure starting from 1 September 1876. Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned Residential with a plot ratio of 1.4. The site has a gross floor area (GFA) of 2,158.1 sq m (approximately 23,229.8 sq ft). Including the bonus balcony space, the total GFA will come up to about 2,309.2 sq m (approximately 24,855.9 sf ft).
Ms Goh added, “This is a rare opportunity to acquire a 999-year leasehold residential site that is nestled in an exclusive and serene landed residential enclave. Being located within a mature estate, the Jansen Mansions site is accessible to a wide range of community and recreational facilities. Subject to relevant approvals from the authorities, the successful tenderer will be able to build 21 new residential units on the plot.
“We believe the future development will enjoy keen interest from home buyers and investors as its 999-year leasehold tenure will help to preserve capital value and facilitate legacy planning. In addition, new employment nodes such as the Lorong Halus Industrial Estate and Defu Industrial Estate will also bring jobs closer to home.”
Situated amidst bustling towns of Serangoon and Kovan, the Jansen Mansions site is well-served by public transport such as the Kovan MRT station and it also has easy access to main roads and expressways including the Central Expressway (CTE), Pan Island Expressway (PIE), as well as the Kallang-Paya Lebar Expressway (KPE). It is also a short drive to the Orchard Road shopping belt and the central business district (CBD).
Nearby amenities and eateries include the Heartland Mall at Kovan, Nex shopping mall, and the popular Chomp Chomp Food Centre, as well as the Serangoon stadium and swimming complex. There are also several schools in the vicinity, such as Zhonghua Primary School, Yangzheng Primary School, Rosyth School, St. Gabriel’s Primary School, Nanyang Junior College, Hillside World Academy, Australian International School, and the International French School.
The collective sale tender of Jansen Mansions will close on 23 March 2021 at 3 pm.
Mr Paul Ho, chief mortgage officer at iCompareLoan, said that “although the Covid-19 circuit breaker makes en bloc sales that much tougher, the site of the Jansen Mansions is in a good location and is hard to come by. Prospective developers will also take note that owners have dropped the reserve price from 22 million to $19.8 million.”
The en bloc sales market has been relatively dampened by the cooling measures introduced over the past few years, but has been trying to rear its head again with the low interest rate environment. But developers are wary of end-demand and are hurt by the 5 per cent non-remittable Additional Buyers’ Stamp Duty (ABSD) on land purchase. As such, itt 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.
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.
“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.”