Ravi Chandran
Colliers International, the sole marketing agent for Tulip Garden, has cleared the air on market speculation that the collective sale of the prime freehold development has hit a drawback.
Its managing director Tang Wei Leng said: “There is no basis to the market speculation. The Tulip Garden collective sale is proceeding and we are working towards the completion of sale.”
The market talk centred on the sale of the prime freehold development being halted because the number of residential units being planned by buyer Asia Radiant had not been approved by the authorities.
Colliers announced in April that prime freehold development Tulip Garden in Farrer Road has been sold for $906.889 million to Asia Radiant Pte Ltd. The sale is the second largest collective sale deal to date in 2018. Asia Radiant is an entity jointly held by MCL Land Limited and Yanlord Land Group Limited.
The sale price of the prime freehold development is 20.4 per cent higher than the owners’ reserve price of $753 million. The price is the second highest price premium achieved in a residential collective sale transaction so far this year.
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At $906.889 million, the sale price of the prime freehold development works out to a land rate of $1,790 per square foot per plot ratio (psf ppr), surpassing that of recent collective sale transactions in the area: SGD1,703 psf ppr for Hollandia; $1,654 psf ppr for The Estoril; and $1,536 psf ppr for The Wilshire.
Under the Master Plan 2014, the Tulip Garden site is zoned Residential with a Gross Plot Ratio of 1.6 and an allowable height of up to 12 storeys. No development charge is payable for redevelopment up to a Gross Plot Ratio of 1.6.
Ms. Tang Wei Leng, Managing Director at Colliers International, said in April, “Despite a spate of collective sale deals done in the Holland Road area in recent months and a large slate of redevelopment sites on the market, the tender for Tulip Garden still attracted very keen interest – a testament to its excellent locational attributes. The healthy demand for and firmer prices of residential sites reflect the optimism and rising confidence among developers of a more definitive recovery in the Singapore property market.”
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Spanning 29,423.2 sq m (approximately 316,708 sq ft) in land size, the prime freehold development site sits on the fringe of an exclusive Good Class Bungalow (GCB) area in the prime District 10. It is conveniently located near Farrer Road MRT station on the Circle Line and is easily accessible to a wide range of amenities in Holland Village, Dempsey Hill, Bukit Timah, Empress Road and Orchard Road.
Ms. Tang added, “What was appealing about the site was its large contiguous land area which will offer greater flexibility in the planning and development of the new residential project, providing ample space for wide-ranging facilities and social areas for future residents. Large plots in prime central locations are rare and Tulip Garden provides an opportunity for the developer to capitalise on the upturn in the high-end homes segment. For the whole of 2018, we estimate that prices could rise by 10% in the Core Central Region.”
Tulip Garden comprises 162 units of apartments and maisonettes and two shop units. Sizes of residential units range from 158 sq m to 317 sq m (approximately 1,701 sq ft to 3,412 sq ft). Depending on the size of the property, each residential unit owner could receive between SGD4.3 million and SGD7.6 million from the successful sale of the development.
Mr. Ng Kee Wah, Chairman of the Tulip Garden Collective Sale Committee, said in April: “The owners are extremely delighted with the excellent outcome achieved by Colliers for the Tulip Garden tender. The price garnered in the deal was over and beyond our expectation. This is our fourth try at collective sale and we know marketing such a large site was not an easy task. Hence, we are very pleased that Colliers, with its vast network of investors and expertise, has successfully brokered a deal.”
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Since September 2017, Colliers International has successfully sold five residential collective sale sites – comprising Jervois Gardens, Parkway Mansion, City Towers, Pearlbank Apartments and Tulip Garden – with a combined value of over SGD2.2 billion. These transactions continue to reflect and affirm Colliers’ proven track record and deep capabilities in the capital markets and property investment sales sector.
The collective sale tender for Tulip Garden was launched on February 28 and closed on April 11 at 3pm.
Commenting on en bloc sales, Mr Paul H chief mortgage consultant of icompareloan.com said: “as the sales proceeds start to come in from the en bloc sales completion from now till 2019, landed properties, especially the inter-terrace segment will hot up.”
This Mr Ho believes is because en bloc sales homeowners who are flush with cash, will resort to value hunting instead of choosing smaller condominiums which are beginning to sell at unbelievable prices.
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