SINGAPORE - Freehold seafront condo Meyer Park in Marine Parade has been relaunched for collective sale at a reserve price of $420 million.
This works out to a land rate of $1,764 per sq ft per plot ratio, including an estimated land betterment charge of $90.9 million. The sale tender will close on Nov 2.
Marketing agent Edmund Tie said the tender was first launched in July 2022 after Meyer Park obtained the requisite 80 per cent owners' consent to a collective sale, after four previous attempts. However, this tender closed on Sept 9 with no buyers.
Ms Swee Shou Fern, head of investment advisory at Edmund Tie, said the site can be redeveloped to a mid-sized luxury high-rise condominium development accommodating up to 251 residences.
“The successful bidder will have ample time to submit their development application to the authorities and lock in the current definition of gross floor area before June 1, 2023,” she added.
Located at 81 and 83 Meyer Road, near the upcoming Katong Park MRT station, Meyer Park sits on a land area of 8,981 sq m and is zoned for residential use with a plot ratio of 2.8. Including a 7 per cent bonus floor area, the maximum allowable gross floor area works out to 26,907 sq m.
Amenities in the site’s vicinity include malls such as Parkway Parade and i12 Katong, as well as heritage shophouses housing both retail and food and beverage businesses.
Citing Urban Redevelopment Authority data, Edmund Tie said non-landed homes in the city fringe, where Meyer Park is located, have seen 29.8 per cent price growth between first quarter 2020 and third quarter 2022, compared with 10.1 per cent price growth in the prime district and 25.8 per cent in the suburbs.
According to Savills Research, private residential investment sales jumped 77.2 per cent to $2.48 billion in the third quarter from the previous quarter, due mainly to more developers replenishing land banks following a healthy take-up of new launches and dwindling unsold stock.
Larger residential developments sold en bloc also boosted numbers, with Chuan Park’s $890 million sale to Kingsford Development and MCC Land the biggest collective sale deal so far in 2022.
As a result, residential investment sales accounted for 72 per cent of total investment sales value in the third quarter, up from 45 per cent in the second quarter, Savills said.
On the other hand, residential investment sales in the public sector dropped 44.1 per cent to $1.09 billion due to smaller and lower-priced sites awarded under the Government Land Sales (GLS) programme.
While more GLS sites were awarded in the third quarter compared with the previous quarter, the scale of the sites was significantly lower, Savills noted.
Mr Alan Cheong, head of Savills Research, said: “High interest rates and increased global political uncertainties have resulted in a change in investor profile, from large private equity to family offices like corporate entities... How the market will develop in 2023 depends heavily on whether central banks continue to raise interest rates.”