The 12 owners of the Dunearn Court condominium have put the property on the market for $38.8 million, with substantial gains likely from the sale.

The tender comes hot on the heels of a slew of collective sale deals sealed in recent months amid rising optimism in the private residential market.

The asking price works out to a land rate of about $1,443 per square foot (psf) per plot ratio, said marketing agent Knight Frank, adding that no differential premium is payable.

Dunearn Court, in Dunearn Road in prime District 11, has a site area of 1,784 sq m (19,203 sq ft) and comprises just 12 apartments.

Knight Frank told The Straits Times last week that each owner stands to receive "in excess of $3 million" from the sale, depending on the size of their apartments, which range from 1,356 sq ft to 1,561 sq ft.

The price would be around 75 per cent above the open market value if the owners were to sell their units individually, it added.

The large premium stems from the fact that Dunearn Court - built in 1993 - is a walk-up block with no condo facilities and the units fetch lower prices on the open market.

The site has a gross plot ratio of 1.4 and is zoned for residential use.

"Redevelopment sites are at present highly sought after, particularly boutique redevelopment sites with gross development value of below $100 million," said Mr Ian Loh, head of investment and capital markets at Knight Frank.

The eventual buyer could configure the maximum permissible gross floor area of about 26,884 sq ft into 32 apartments with an average size of 753 sq ft, Mr Loh added.

Amenities nearby include Nanyang Primary School, Nanyang Girls' High School, Hwa Chong Institution and National Junior College.

The site is about 500m from the Tan Kah Kee MRT and Botanic Gardens MRT stations.

Knight Frank closed two collective sale deals this year: Rio Casa, which was sold to Oxley-Lian Beng Venture for $575 million, and One Tree Hill Gardens to Lum Chang Holdings for $65 million.

The tender for Dunearn Court closes on Sept 6.