SINGAPORE - The owners of Cascadale have put their 25-year-old, freehold condominium development up for collective sale with a reserve price of $270 million, marketing agent JLL announced on Tuesday (May 28).
This translates to a land rate of about $1,071 psf ppr, after including an estimated development charge of about $17 million and before factoring any bonus gross floor areas, said JLL.
The condo owners meanwhile stand to receive between $1.4 million to $4.0 million each, said JLL.
JLL senior consultant Karamjit Singh said demand and values for homes in this area are expected to rise by 10 to 20 per cent over the next three to five years.
This is in light of development plans for areas surrounding Changi Airport, which recently saw the launch of Jewel at Changi Airport. Another development is the upcoming mega Terminal 5, which plans to facilitate doubling tourist arrivals.
The 134-unit Cascadale sits on a site zoned "residential" under the 2014 Master Plan, and has a land size of 167,528 square feet.
It has a gross plot ratio of 1.6 and an allowable building height of up to 12 storeys, or 45 metres above mean sea level, subject to approval from the relevant authorities.
The development is situated along Upper Changi Road East, some 350 metres from Upper Changi MRT station, two stations from Changi Airport and the Jewel. It is also located close to the Singapore University of Technology & Design, Changi City Point, Changi Business Park and Singapore Expo.
Cascadale may be redeveloped into a condominium project comprising up to 292 units with an average size of 85 square metres per apartment, subject to approval and payment of development charges.
According to JLL, the location is also attractive for redevelopment into serviced residences with approval from the authorities.
The recently unveiled draft 2019 Master Plan also outlines plans to transform the entire Changi East area into an innovative lifestyle and economic cluster, centred on aviation-related businesses and industries.
Moreover, Mr Singh said there are no new condominium projects in the pipeline for District 16, which includes areas such as Bedok, Upper East Coast Road, Sennett Road, Eastwood and Tanah Merah.
"Aside from a small site on Upper East Coast Road sold in 2017, there has been no freehold residential site sold since 2010," he added.
Although residential en bloc transactions have "practically come to a halt" since the cooling measures in July last year, JLL believes Cascadale stands a "reasonably good chance" of securing a buyer due to these unique factors and reasonable reserve price.
Its tender will close on July 10, 2.30pm.