SINGAPORE - The obscene windfall an enbloc sale can bring to lucky homeowners can best be exemplied by the sale of Katong Park Towers, a 99-year leasehold condominium that has seen better days.
The owner of the biggest penthouse in the development will rake in a cool $12.08 million after a unit of Bukit Sembawang Estates bought the estate for $345 million following a competitve tender.
There are altogether five penthouses and these owners can expect to received proceeds ranging from $4.95 million to $12.08 million.
"These premiums are fairly substantial, compared to units which were sold individually in the open market," said Cushman & Wakefield, which brokered the deal.
Other owners will receive proceeds ranging from $2.25 million to $3.23 million, depending on their floor area and size.
The sale price was some 20 per cent above the reserve price of $288 million.
The tender attracted a total of 10 bids and all were above the reserve price.
Katong Park Towers, which comprises 111 standard apartments, five penthouses and two commercial units, sits on a land area of 140,758 sq ft.
It is located about 200 metres from the future Katong Park MRT Station, which is slated for completion in 2023.
According to Singapore's 2014 Master Plan, the site is zoned "residential", with a plot ratio of 2.1 and a maximum building height of up to 24 storeys. The site is not affected by any traffic impact study.
The recent increase in development charges in this precinct has minimal impact on the price as Katong Park Towers has a fairly high baseline.
At the sale price of $345 million, the land rate for Katong Park Towers translates to $1,280 per sq ft per plot up to the development baseline, taking into account an estimated $60 million for the lease upgrading premium.
Mr Ng Chee Seng, CEO of Bukit Sembawang Estates said: "We are pleased to be awarded
this coveted residential address in a prime district. Our planned development is nestled in low-rise landed houses along Meyer & Mountbatten Road, and will offer rare, unobstructed panoramic views of the city skyline.
"We see good potential in this site because it is well-connected to the future Katong
Park MRT Station. With Katong's rich heritage and rejuvenation initiatives under the Kallang Masterplan, we are confident that this will be another quality development added to our portfolio."
The sale is subject to approval from the Strata Titles Board.
