Fragrant Gardens, located off Upper Paya Lebar Road, has put itself on the market for a collective sale with a reserve price of $65 million.

This translates to a land rate of approximately $1,204 per square foot per plot ratio (psf ppr), said marketing agent Knight Frank.

With no development charge payable, and with the inclusion of a 10 per cent bonus balcony gross floor area, the land rate works out to about $1,094 psf ppr, subject to the authorities' approval.

The 37-unit freehold development occupies a 38,576 sq ft plot.

With a gross plot ratio of 1.4 and a maximum gross floor area of about 54,005 sq ft, the site can be redeveloped into 71 new units averaging 70 sq m each.

The Land Transport Authority has confirmed that a pre-application feasibility study on traffic impact will not be required for the site, said Knight Frank.

Fragrant Gardens is surrounded by landed homes and condominiums, with Paya Lebar Methodist Girls' Primary and Maris Stella High School within a kilometre of the development. It is also two bus stops away from Nex mall and Serangoon MRT station.

"The reserve price for Fragrant Gardens is very competitive compared to the transaction of Sun Rosier at $1,325 psf ppr ($271 million). Despite recent government cooling measures, the price quantum of $65 million is a palatable, low-risk acquisition to mid-sized developers," said Mr Ian Loh, executive director and head of investment and capital markets at Knight Frank Singapore.

"Coupled with no possible risk of development charge movements, we believe the site could attract developers with lower risk appetites looking for redevelopment opportunities."