The 2 enbloc sales in Balestier area have been successfully clinched as planned. Far East & Orchard Parade purchased Pastoral View together with adjacent OCBC land at an estimated $847 per square foot per plot ratio (psf ppr), and a local boutique developer bought Melrose Court at $665 psf ppr.

With the series of cooling measures introduced lately by Government, we expect to see more caution from developers in their land bidding. However freehold prime sites with sizeable areas are difficult to come by nowadays, therefore the recent enbloc at Pastoral View is going stir interest in some mature and sophiscated buyers if the selling prices of the residential units are priced right.

Pastoral view site is a prime site with its freehold title, with its proximity to Novena shopping malls and MRT station. In addition the 2 freehold sites have a combined land area of 51,395 sq ft which offers greater variety and economies of scale in the development. Therefore the unit land price of $847 psf ppr is relatively attractive. If the developers are able to work out less than $500 psf for the construction cost inclusive of professional fees and miscellaneous, Far East & OPH can easily fetch the project at expected $1800 psf with a fat attractive 33.3 % profit margin.

Far East, Orchard Parade buy Bassein Road residential plots

FAR East Organization and its listed unit Orchard Parade Holdings have clinched their second residential development site this week. The duo will buy Pastoral View (through a collective sale) and the next door plot being sold by OCBC for a total of $122 million.

This works out to a unit land price of about $847 per square foot per plot ratio (psf ppr) inclusive of a marginal development charge (DC) payable for OCBC’s plot at 11 Bassein Road. No DC is payable for Pastoral View, at 7 Bassein Road. The two freehold sites have a combined land area of 51,395 sq ft and can be redeveloped into a new condo with about 140 units averaging 1,000 sq ft. The District 11 properties near Novena MRT Station are zoned for residential use with a 2.8 plot ratio and 36-storey allowable height under Master Plan 2008.

Market watchers estimate the breakeven cost for a new condo on the site could be around $1,300 psf. In July, City Developments released its 368 Thomson freehold condo at an average price of about $1,350 psf.

‘The raft of cooling measures introduced by the government has resulted in some developers turning cautious but many are still keen on prime freehold land parcels with good attributes that are difficult to come by,’ said Tan Hong Boon, deputy managing director of Credo Real Estate. The company handled the sale of the two properties through a tender which closed last month, attracting a handful of submissions.

Credo did not give a split of the $122 million between Pastoral View and the plot sold by OCBC. However, Mr Tan said Pastoral View’s reserve price has been met. Pastoral View’s sale is subject to approval of the Strata Titles Board as owners’ unanimous consent has not been secured. Owners of Pastoral View’s 50 units stand to receive gross sale proceeds ranging from slightly over $1 million for studio apartments to $4.37 million for the penthouse. These sums are 80-90 per cent more than what the units would have sold for individually, according to Mr Tan.

Earlier this week, Far East and OPH clinched a 99-year leasehold plot at Jalan Eunos at a state tender on which they plan to develop a five-storey condo project that will incorporate some townhouses. Their winning bid of $414.57 psf ppr was 26.5 per cent above the next highest offer.

OPH said yesterday it will be taking stakes of 20 per cent in the Jalan Eunos site and 30 per cent in the Bassein Road properties.

Source : Business Times – 10 Sep 2010

Melrose Court sold for S$44m in en bloc sale

Melrose Court in Balestier has been sold for S$44 million in a collective sale.

The 32-unit residential development at No.10, Lorong Limau was sold to local boutique developer Melrose Land.

The property’s broker, Colliers International, says that Melrose Court is not linked to Melrose Land and notes that the sale is subject to the approval of the Strata Titles Board.

The freehold residential site has an area of 23,789 square feet.

Under the 2008 Master Plan, it has a gross plot ratio of 2.8.

Including the development charge of about S$277,235, the sale price translates to a land price of about S$665 per sq ft per plot ratio.

Colliers International says that upon approval, each owner is expected to receive gross proceeds of some S$1.129 million to S$2.261 million from the sale, depending on the size of their unit.

It also says that the site could accommodate a residential development of up to 36 storeys, comprising some 88 units of 830 sq ft each.

Source : Channel NewsAsia – 1 Sep 2010