High Point condo relaunched for collective sale at $550m after Shun Tak aborted deal

The $550 million guide price for the Mount Elizabeth site is unchanged from its previous tender launched in October 2021. PHOTO: ST FILE

SINGAPORE - High Point condominium in the Orchard Road area is back on the collective sale market three months after Hong Kong-listed Shun Tak Holdings backed out of a $556.7 million winning bid for the freehold site.

The $550 million guide price for the Mount Elizabeth site in prime District 9 is unchanged from that of the previous tender launched in October last year, and works out to $2,508 per square foot per plot ratio (psf ppr) including development charges of $18.8 million.

Shun Tak and its representatives have not responded to media queries on why it pulled out, but market observers say it could have been due to the last round of property cooling measures, which raised additional buyer's stamp duty rates for foreign buyers - the main customers for luxury condos here - to 30 per cent from 20 per cent.

Still, marketing agent Savills said that a few developers have been "monitoring High Point with us over the last few weeks, and we feel that it is timely to relaunch the public tender now to give developers ample time to evaluate".

Savills will set the tender closing date when it has received confirmed interest from a developer, said Mr Jeremy Lake, managing director of investment sales and capital markets at Savills.

"This is somewhat similar to the URA Reserve List approach to selling sites," he added.

Due to December 2021's property curbs, Mr Lake said it would be harder to achieve the 80 per cent mandate for many future collective sale projects, particularly in the core central region where foreign ownership is much higher.

"Thus the supply of prime sites will be extremely low, and the supply of new ultra-luxury condominiums for sale will remain highly constrained," he said.

Foreign buying in luxury property will likely resume later this year, and the supply scarcity could lead to prices rising, he added.

High Point has 57 apartments and two penthouses, and sits on a land area of 47,606 sq ft, with an existing gross floor area of around 211,976 sq ft. Completed in 1973, it is zoned residential with an allowable gross plot ratio of 2.8 and height control of up to 36 storeys.

Savills said that High Point could be redeveloped into an ultra-luxurious residential project with up to 98 units, assuming each apartment averaged 200 sq m in size.

Meanwhile, another private residential development, Lakeside Apartments along Yuan Ching Road near the Jurong Lake district, will be put up for collective sale again on Tuesday (March 22) at a reserve price of $240 million.

The asking price is up from its last collective sale attempt in 2019 at $205 million. The new price works out to a land rate of $1,077 psf ppr, including the lease top-up premium and development charge.

Tender for this site will close on May 25.

The 99-year leasehold project has 120 residential units and sits on a 134,177 sq ft site. It has the potential to be redeveloped into a 24-storey residential building with 307 condominium units, averaging 915 sq ft each.

Ms Tracy Goh, head of investment and collective sales at PropNex, said: "The site is well-connected via public transport. With the ongoing transformation of Jurong, we will likely see more firms relocating there, driving job creation in the area.

"Jurong has strong pent-up demand for new homes as there have been few private residential launches in recent years. In particular, the Lakeside area has had no new launches since Lake Grande in 2016. In addition, the healthy response to Parc Clematis in Clementi indicates a strong interest for projects in western Singapore.

"Despite the new cooling measures in December 2021, demand from HDB upgraders remains robust and we expect the site to appeal to developers," Ms Goh added.

Join ST's Telegram channel and get the latest breaking news delivered to you.