SINGAPORE – Freehold Island View condominium in Pasir Panjang has been put up for collective sale with a reserve price of $575 million, sole marketing agent PropNex said on Monday.
This works out to a land rate of around $1,623 per sq ft per plot ratio (psf ppr), after factoring in the 7 per cent bonus gross floor area allowed for balconies and an estimated land betterment charge of $178 million.
Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned for residential use with an allowable gross plot ratio of 1.4 and a building height control of up to five storeys.
Based on an average unit size of around 1,076 sq ft, a new project can yield up to 402 new homes, said PropNex.
Built in 1984, the condominium sits on a sprawling 309,543 sq ft plot in Jalan Mat Jambol in District 5.
PropNex said the 72-unit development is on elevated ground, just 330m from Pasir Panjang MRT station.
PropNex head of collective sales Laurence Wong said: “(This is) the largest freehold condominium land in Pasir Panjang... In addition, the site faces Singapore’s southern coastline, potentially offering units on higher floors some sea view.”
He added that investors may benefit from a “sizeable pool of leasing demand” due to the site’s vicinity to office areas such as Mapletree Business City, Singapore Science Park, one-north and Alexandra Technopark.
“Over the longer term, the Pasir Panjang district could stand to benefit from future development in the area, such as the Greater Southern Waterfront – a new major gateway for urban living and commercial activities – and the ongoing rejuvenation of Sentosa and its offerings.”
Island View is the second collective sale launched in a week.
Last Wednesday, the 99-year leasehold Pine Grove condo in Holland Road was put up at a guide price of $1.95 billion.
The price tag translates to $1,434 psf ppr, after taking into account an estimated land betterment charge of $1 billion for the intensification of land use and lease upgrade for the massive 893,218 sq ft site, which would take the effective purchase cost to $3 billion.
Huttons chief executive Mark Yip noted that the collective sale market remains “quiet at the moment”.
“Huttons Data Analytics estimates that more than 20 collective sale tenders closed in 2023, but of these, only Meyer Park and Kew Lodge were successfully sold,” he said.
In February, the 60-unit Meyer Park was sold to UOL Group and Singapore Land Group in its third collective sale attempt at $392.2 million, or $1,668 psf ppr.
Kew Lodge, a freehold landed residential site in Kheam Hock Road, was sold to a Woh Hup subsidiary in May for $66.8 million, or $1,940 psf ppr.
Developers have also grown cautious when taking on land amid economic uncertainty and soaring financing costs, said Mr Nicholas Mak, chief research officer of property portal Mogul.sg, pointing to recent Government Land Sales activity.
Last week, just two bids were received for a plot in Lentor Close.
Meanwhile, some six bids competed for a parcel in Champions Way in Woodlands, with offers coming in below expectations.
In comparison, a tender for an executive condominium site in Tengah drew nine bids when it closed on June 27.
Mr Mak also noted that, year to date, only two caveats were lodged at Island View condo. The latest transaction was for a 325 sq m unit in June at around $5 million, or $1,415 psf. That puts the land rate of $1,623 psf ppr at a slight premium, he said.
Huttons’ Mr Yip said: “That said, if the asking price is in line with recent land prices and the quantum is palatable, it may have a chance of a successful sale.”
The tender for Island View will close on Oct 19 at 2pm. THE BUSINESS TIMES
