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 yesterday.
This translates to a land rate of about $1,071 per sq ft per plot ratio, after including an estimated development charge of about $17 million and before factoring in any bonus gross floor areas, said JLL.
The owners stand to receive between $1.4 million and $4 million each, said JLL.
JLL senior consultant Karamjit Singh said demand and values for homes in this area are expected to rise by 10 per cent to 20 per cent over the next three to five years.
This is in the light of development plans for areas surrounding Changi Airport, which recently saw the launch of Jewel Changi Airport.
Another development is the upcoming Terminal 5, which aims to handle twice the current number of tourist arrivals.
The 134-unit Cascadale sits on a site zoned as "residential" under the 2014 Master Plan, and has a land size of 167,528 sq ft. It has a gross plot ratio of 1.6 and an allowable building height of up to 12 storeys, or 45m above mean sea level, subject to approval from the authorities.
The development is located in Upper Changi Road East, some 350m from Upper Changi MRT station, two stations from Changi Airport and Jewel. It is close to the Singapore University of Technology and Design, Changi City Point, Changi Business Park and the Singapore Expo.
Cascadale may be redeveloped into a condominium project comprising up to 292 units with an average size of 85 sq m 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 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 in Upper East Coast Road sold in 2017, there has been no freehold residential site sold (in the district) since 2010," he added.
JLL believes that although collective sales of residential sites have "practically come to a halt" since the cooling measures in July last year, Cascadale stands a reasonably good chance of securing a buyer due to these unique factors and a reasonable reserve price.
The tender will close on July 10 at 2.30pm.