SINGAPORE - Freehold development Cairnhill Astoria will be launched for collective sale on Thursday (May 17) via public tender for $196 million.
The reserve price reflects a land rate of $1,964 per sq ft per plot ratio (psf ppr), inclusive of an estimated development charge of $16.34 million.
This is comparable to the land rate of $1,914 psf ppr at Cairnhill Heights which was sold last month, and less than than the $2,311 psf ppr at Cairnhill Mansions which was transacted in February this year, marketing agent Colliers International highlighted.
Sitting on a 3,587.5 sq m (about 38,615 sq ft) site in prime District 9, Cairnhill Astoria - built in 1983 - 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 approvals from the authorities, the site at Cairnhill Rise can be redeveloped to offer about 200 apartments, based on an average unit size of 540 sq ft.
The property is near to Orchard and Somerset MRT stations as well as popular schools such as Anglo Chinese School (Junior), St Margaret's Primary School, ISS International School and Chatsworth International School.
Tang Wei Leng, managing director at Colliers International, said: "It is clear that collective sale interest among developers has shifted from the suburban to prime sites. From January to May 15, 2018, there were 13 successful collective sale deals valued at over $3.85 billion in Districts 9 and 10, up from five transactions worth $870 million for the whole of 2017."
Ms Tang added: "We think the high-end homes segment has turned a corner following a price slump since June 2013. Prices of luxury homes in the core central region continued to climb in Q1 2018, rising by 5.5 per cent over Q4 2017 according to latest figures released by the Urban Redevelopment Authority."
Based on the size of the property - ranging from 700 sq ft to 6,060 sq ft - each owner could potentially receive between $2.275 million and $14.261 million if the deal goes through.
Paul Kwek, vice-chairman of the Cairnhill Astoria collective sale committee, said: "We believe the market conditions have improved and are hopeful of achieving a positive outcome with the advice and expertise of Colliers International."
The collective sale tender for Cairnhill Astoria will close at 3pm on June 27.