SINGAPORE - Freehold sea-fronting Meyer Park has been relaunched for collective sale at a lower reserve price of $390 million after its two previous attempts closed without a sale.
The District 15 condo was first launched for collective sale on July 25 last year with a reserve price of $420 million. It was relaunched at the same reserve price on Oct 13, with the tender again closing on Nov 2 without a deal.
Meyer Park sits on a land area of approximately 96,672 sq ft. With an estimated land betterment charge of about $90.9 million, the land rate at the current reserve price works out to approximately $1,660 per sq ft per plot ratio (psf ppr), including a 7 per cent bonus floor area.
This compares with a land rate of around $1,764 psf ppr when the reserve price was at $420 million.
Under the Urban Redevelopment Authority Master Plan 2019, the site is zoned for residential use with a plot ratio of 2.8. Including the bonus floor area, the maximum allowable gross floor area works out to some 289,628 sq ft.
“Developers are actively hunting to replenish their land banks, albeit more cautious and selective in this current market,” said Ms Swee Shou Fern, head of investment advisory at sole marketing agent Edmund Tie. “As such, sites of a palatable size and quantum, coupled with strategic location and exceptional site attributes, such as Meyer Park, will have a strong appeal to developers.”
She added that the successful buyer can consider developing luxurious seafront homes along Meyer Road, having previously suggested a mid-sized high-rise condominium accommodating up to 251 residences.
Meyer Park enjoys unblocked views of two-storey landed homes to its north and sea views across its 88m frontage to its south.
The condo was completed in the 1980s, and houses 60 apartments. Amenities in its vicinity include malls such as Parkway Parade and i12 Katong, as well as heritage shophouses housing both retail and food and beverage businesses. Nearby schools include Tao Nan School, Dunman High School and Victoria Junior College, among others.
The Katong Park MRT station on the Thomson-East Coast Line, which is expected to be operational in 2024, is a short distance away.
The tender for Meyer Park will close on Feb 8 at 3pm.
Separately, another District 15 condo, Mandarin Gardens, is taking one more stab at a collective sale. Owners of the 99-year leasehold development in Siglap Road are reportedly considering a reserve price of $2.88 billion.
The 1,006-unit condominium sits on a 1.07 million sq ft site.
This would be Mandarin Gardens’ third attempt at a collective sale, with the first two in 2008 and 2018.
In the second attempt, the initial reserve price of $2.478 billion was raised to $2.788 billion after it was found that the land was undervalued by over $300 million. In February 2019, it was raised a second time to a record asking price of $2.927 billion.
But by the time the collective sale agreement expired in March 2019, only 68 per cent of owners had signed on the dotted line – falling short of the requisite 80 per cent consensus.
Completed in 1986, the condo is 37 years old this year. THE BUSINESS TIMES
