Ravi Chandran
Colliers International on 17 September announcement about two prime freehold sites relaunched for en bloc sale. The first prestigious freehold development Grange Heights in St. Thomas Walk will be put up for collective sale via public tender for $820 million on 18 September 2018.
The reserve price works out to a land rate of $1,948 per square foot per plot ratio (psf ppr) after factoring the 10% bonus balcony Gross Floor Area (GFA). No development charge is payable for the intensification of land use.
Grange Heights, one of the two prime freehold sites relaunched, is centrally located within the River Valley planning area, an affluent residential district near the vibrant Orchard Road shopping street, which is lined with premier malls, top hotels and a myriad of food and beverage offerings.
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Ms Tang Wei Leng, Managing Director at Colliers International, said, “The well-sized Grange Heights site presents the successful tenderer with an exciting opportunity to develop an upmarket, luxury residential development in the heart of a popular high-end residential district. Subject to relevant approvals, the redevelopment site can potentially yield 388 new units at average size of 1,033 sq ft each.”
Built in the mid-1970s, Grange Heights comprises 114 apartments and maisonettes as well as six penthouses with sizes ranging from 1,884 sq ft to 4,575 sq ft. The redevelopment site – spanning 12,697.7 sq m (approx. 136,676 sq ft) – is zoned ‘Residential’ and has a Gross Plot Ratio of 2.8 under the Master Plan 2014. Including the 10% bonus balcony GFA, the new development will have a proposed total Gross Floor Area of 39,108.9 sq m (approx. 420, 964 sq ft) and a building height control of up to 36 storeys.
A wide range of amenities can be found in the vicinity, including Cineleisure Orchard, *Scape, 313@Somerset, Orchard Central, Orchard Gateway, and Great World City. More lifestyle and F&B options are also a short drive away in Clarke Quay and Robertson Quay. The site is also within 1-km from River Valley Primary School, and close to international schools such as ISS International School and Chatsworth International School (Orchard Campus).
Ms Tang added, “The convenience of being near Singapore’s main shopping district and the allure of living in an upscale residential area – with a good public transport network – will remain appealing to many prospective home buyers. Recent new launches in nearby areas have seen relatively healthy sales, reflecting genuine demand for homes in the Core Central Region.”
Post cooling measures which took effect on 6 July 2018 and based on caveats lodged as at 11 September, New Futura which is adjacent to Grange Heights has sold eight units, achieving an average selling price of about $3,533 psf; 120 Grange shifted two units at an average price of $3,137 psf, while Martin Modern in Martin Place moved 14 units at an average price of $2,786 psf.
Media reports also cited the sale of over 20 units at 8 Saint Thomas in a private preview in late August. About 85% of the sales were reportedly for one- and two-bedders, and 70% of buyers were locals and 30% were foreigners. According to caveats lodged as at 11 September, 18 units with sizes ranging from 441 to 1,152 sq ft have been transacted at an average price of $3,180 psf.
This is the second attempt at collective sale by owners at Grange Heights. Depending on the size of their property, each owner can potentially receive between $5.235 million and $10.762 million from the successful sale of the development.
Dr Ho Siew Lan, Chairman of the Grange Heights Collective Sale Committee, said, “Redevelopment sites in the Grange Road area do not come by very often and we feel Grange Heights, with its ideal plot size and good location near Orchard Road, will be attractive to developers and investors. We are counting on Colliers’ expertise and advice to help us navigate the evolving collective sale market, so as to achieve an optimal outcome for the owners.”
The tender for Grange Heights will close at 3pm on 29 October 2018.
Besides Grange Heights, freehold development Cairnhill Astoria in Cairnhill Rise – also located near Orchard Road – will be relaunched for collective sale for $196 million on 18 September 2018. The pricing of the District 09 site remains unchanged from the tender price when it was originally put on the market on 17 May 2018. Cairnhill Astoria is the other of the two prime freehold sites relaunched and marketed by Colliers.
The owners’ reserve price reflects a land rate of $1,933 psf ppr, after factoring the 10% bonus balcony Gross Floor Area (GFA) and an estimated development charge (DC) of $33.903 million following the latest revision to DC rates.
Sitting on a 3,587.5-square metre (approximately 38,615 sq ft) site, Cairnhill Astoria comprises 36 apartments across a high-rise residential tower and a low-rise block. Under the Master Plan 2014, the land parcel is zoned ‘Residential’ and has a Gross Plot Ratio of 2.8. Subject to relevant approvals from the authorities, the site can be redeveloped to offer about 150 apartments, based on an average unit size of 753 sq ft.
Depending on the size of their property – ranging from 700 sq ft to 6,060 sq ft – each owner at Cairnhill Astoria could potentially receive between $2.275 million and $14.261 million upon successful completion of the transaction.
Ms Tang added, “Being mere minutes from the bustling Orchard Road, the Cairnhill Astoria site in the prestigious Cairnhill enclave provides both convenience and exclusivity. It offers the successful tenderer an opportunity to create a new landmark offering in the area. The fresh cooling measures may have calmed market sentiment in the near-term but we believe the longer term outlook for high-end homes in Singapore – particularly those in District 09 and 10 – remains positive.”
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Mr Paul Kwek, Vice-Chairman of the Cairnhill Astoria Collective Sale Committee, said, “The development is ageing and the owners are keen to sell the property. We understand that the environment has become a lot more uncertain following the introduction of new cooling measures in July. The owners are mindful of the cautious market sentiment and may be more realistic in their pricing expectation.”
The two prime freehold sites relaunched are well-served by the Somerset and Orchard Road MRT stations and enjoy good connectivity to the rest of Singapore via the Central Expressway.
The upcoming Great World MRT station on the Thomson-East Coast Line, which will offer more superior connectivity to the Northern and Eastern parts of Singapore when it is ready in 2021, is also nearby. The sites are also well-connected to other parts of the island via the Central Expressway (CTE), Ayer Rajah Expressway (AYE) and the Pan Island Expressway (PIE).
Cairnhill Astoria is well-served by the Somerset and Orchard Road MRT stations and enjoys good connectivity to the rest of Singapore via the Central Expressway. It is also located near several popular schools, including Anglo Chinese School (Junior), St. Margaret’s Primary School, ISS International School, Chatsworth International School (Orchard Campus), and Lasalle College of Arts (Winstedt Campus).
The collective sale tender for Cairnhill Astoria will close at 3pm on 17 October 2018.
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