Gilstead Mansion up for collective sale again at lower price

The revised price of $65 million translates to $1,524.70 per sq ft per plot ratio, with no development charge payable.
The revised price of $65 million translates to $1,524.70 per sq ft per plot ratio, with no development charge payable.PHOTO: TEAKHWA REAL ESTATE

Gilstead Mansion has been relaunched for collective sale at $65 million, or $3 million less than its guide price in June, as owners hope to beat the chill of July's cooling measures and the clock.

From early next year, new guidelines on the maximum number of units allowed in new private and condominium projects outside the central area will kick in.

The revised price translates to $1,524.70 per sq ft per plot ratio, with no development charge payable.

The 24-unit freehold development has a land area of 35,751 sq ft and an existing gross floor area of 42,632 sq ft.

Gilstead Mansion is in the Stevens-Chancery area, one of nine areas that will face an increased average unit size of 100 sq m if a development application is submitted to the authorities on or after Jan 17 next year.

Under the current 70 sq m guideline, about 56 units could be redeveloped on the site.

According to marketing agent Teakhwa Real Estate, the Land Transport Authority has written to confirm that a pre-application feasibility study on traffic impact on the site is not required.

"The expected land rate is undemanding in view of the high price transacted for the surrounding Dunearn Gardens, at $1,962 psf, and the 99-year leasehold Chancery Court, at $1,610 psf," Teakhwa Real Estate said in a statement.

"This is an opportunity for developers who target good smallish prime sites at reasonable pricing in this en bloc cycle. The potential buyer may possibly make it on time to develop the site under the current Urban Redevelopment Authority planning guidelines."

The URA has revised guidelines so that the average size of new private flats outside the central area will have to be at least 85 sq m, with nine areas facing the even more stringent 100 sq m guideline. This is to avert a severe strain on infrastructure.

Besides Stevens-Chancery, the other eight areas are Marine Parade, Joo Chiat-Mountbatten, Balestier, Telok Kurau-Jalan Eunos, Pasir Panjang, Kovan-How Sun, Shelford and Loyang.

The Gilstead Mansion tender will close on Nov 22 at 2pm.

Separately, Teakhwa Real Estate said owners at the freehold Balestier Regency have started to sign to lower the reserve price from $218 million to $190 million, in a bid to make the site "more viable and appealing to potential developers".

Balestier Regency, like Gilstead Mansion, is in one of the nine areas that will face the 100 sq m rule.

A version of this article appeared in the print edition of The Straits Times on October 25, 2018, with the headline 'Gilstead Mansion up for collective sale again at lower price'. Print Edition | Subscribe