For sale: Former HUDC estate in Eunos

Owners at Eunosville in Sims Avenue expect offers of between $643 million and $653 million, which translates to about $780 to $790 per sq ft per plot ratio.
Owners at Eunosville in Sims Avenue expect offers of between $643 million and $653 million, which translates to about $780 to $790 per sq ft per plot ratio.PHOTO: ORANGETEE

An HUDC estate in Eunos that has been privatised has gone on the market, just days after a similar estate in Hougang was put on sale.

Owners at Eunosville in Sims Avenue expect offers of between $643 million and $653 million, which translates to about $780 to $790 psf per plot ratio (psf ppr).

That could make the 330-unit Eunosville the largest collective sale in recent years, surpassing the $638 million paid for Shunfu Ville last year, said marketing consultant OrangeTee yesterday. It would also dwarf Rio Casa in Hougang, which went on sale with expectations of more than $450.8 million, or about $586 psf ppr.

The asking price for Eunosville includes a top-up premium of about $181 million for a new 99-year lease and for intensification of the 376,713 sq ft site, which is less than 100m from the Eunos MRT station.

Eunosville owners, who reached the requisite 80 per cent consent needed for the collective sale in less than four months, would each get around $1.9 million to just over $2 million.

 

The estate, which has 70 years left on its lease, has 225 maisonettes in 10 blocks and 75 walk-up apartments across four blocks. The strata floor area for a maisonette is between 156 and 165 sq m (1,679 to 1,776 sq ft), and apartment sizes are from 152 to 160 sq m.

A redevelopment could yield about 1,035 units, with an average size of 90 sq m each.

Mr Alex Oh, OrangeTee's director of business solutions, said selling prices would be in the region of $1,450 psf for a new condominium with a breakeven level of about $1,250 psf.

Mr Marcus Oh, OrangeTee's executive director of business solutions, said: "The recent tweak to the cooling measures has injected some optimism into the residential market... Strong sales results at recent launches such as Grandeur Park Residences... show buyers are still keen to invest in projects with strong locational attributes such as proximity to MRT stations."

He pointed out that 420 units at Grandeur Park Residences were sold within the first weekend of launch at a reported average price of $1,350 psf.

While developers see the en bloc process as a viable source of sites in good locations, their bids will be realistic, given building completion and sales deadlines imposed by the qualifying certificate and additional buyer's stamp duty.

Mr Ong Kah Seng, director of R'ST Research, said: "Developers and sellers are realistic in selling prices, and not capitalising on improved buying sentiment.

"Developers seem to be keen on collective sales recently because they are running low in land inventory... they will need land for development or at least have some sites... to reflect longer-term corporate and business objectives."

Eunosville was privatised in 2011 and had its second en-bloc attempt in 2013. The first bid failed after it was hit by new rules governing home loans.

The tender for Eunosville closes at 3pm on May 31.

A version of this article appeared in the print edition of The Straits Times on April 13, 2017, with the headline 'For sale: Former HUDC estate in Eunos'. Print Edition | Subscribe