SINGAPORE - Telok Blangah House, a freehold mixed-use development located near Vivo City, was put up for collective sale via tender on Monday (March 28) at a guide price of $98 million.
This comes after more than 80 per cent of owners by share value and strata area approved the collective sales agreement (CSA) early last month, marketing agent SRI Capital Market said.
The guide price works out to a land rate of about $1,887 per sq ft per plot ratio, with potentially minimal or no development charge payable.
The 9-storey project in Telok Blangah Road comprises 33 commercial units and 10 apartments.
Each commercial unit owner stands to get between $400,000 and $4.7 million, while each apartment owner stands to get between $3.6 million and $9 million, SRI managing partner Low Choon Sin told The Straits Times.
"This is their first attempt. They formed a collective sale committee in 2018 but didn't get to signing the CSA. But for this attempt, about 83 per cent of owners by share value, and 90 per cent of owners by strata area, signed the CSA," he said.
The tender will close at 3 pm on May 5.
More properties are now trying their luck at collective sales following the landmark sale of Tanglin Shopping Centre in the Orchard Road area for $868 million last month.
Last week, freehold commercial building Verdun House in Farrer Park was relaunched for collective sale via tender at $55 million - its third try in four years.
Strata-titled mall Midpoint Orchard is also preparing for a third collective sale bid at around $350 million.
Despite the Dec 16 round of property curbs, demand for commercial properties remains strong as they are not affected by the additional buyer's stamp duty (ABSD) regime.
Edmund Tie chief executive Desmond Sim said that higher ABSD rates for residential sites are likely to dampen developers' interest for large housing sites, and have helped fuel interest in the commercial sector.
In particular, mixed-use development, commercial-zoned sites are getting more interest because "the residential component of these sites are not subjected to ABSD or qualifying certificate rules", Mr Sim added.
In comparison, for residential sites bought on or after Dec 16, 2021, developers are subject to 40 per cent ABSD, of which 35 per cent ABSD may be remitted upfront, subject to certain conditions.
"Singapore has emerged as an attractive safe haven for the capital markets, which is reinforced by its better-than-expected economic growth last year," Mr Sim said.
This has helped bolster the commercial sector here, which saw $6.2 billion worth of deals done in the first quarter alone.
This compares with its total deal flow of $6.2 billion for the whole of 2021, Edmund Tie said.
Notable deals done in the first three months of this year include the sale of 79 Robinson Road for $1.3 billion, the collective sale of Tanglin Shopping Centre, and the sale of Cross Street Exchange for $810.8 million.
Located near HarbourFront MRT Station, Telok Blangah House is within a short drive to Mount Faber Park, HarbourFront Centre, Marina at Keppel Bay, Resorts World Sentosa and Universal Studios Singapore.
The maximum permissible gross floor area is 51,943 sq ft. The 14,841 sq ft commercial and residential-zoned site can be redeveloped into a new building with 34 residential units and 20,788 sq ft of commercial space.
"The site may be redeveloped into a single integrated boutique development comprising both co-living and co-working spaces," Mr Low said.
"With the relocation of the container ports to Tuas Mega Port and potential redevelopment of The Keppel Club site into a new residential precinct, the area is poised to be transformed into a `live, work and play' destination," he added.