Pasir Panjang Hill site up for en bloc sale
A 32-UNIT four-storey apartment building at Pasir Panjang Hill is up for collective sale with an asking price of $28 million for the freehold 63,707 sq ft site.
Based on a plot ratio of 1.4 and an additional development charge of about $5.8 million, the site should cost $370 per square foot per plot ratio, and the breakeven cost will be around $660 psf per plot ratio, according to Jones Lang LaSalle’s regional director and head of investments, Lui Seng Fatt. The firm is also the sole marketing agent for the property.
Last month, MCL Land bought Balmeg Court, also in Pasir Panjang, for $79.2 million. This works out to $340 psf per plot ratio for the 182,555 sq ft site. In the same month, Hoi Hup launched the Foliage, an 88-unit freehold condominium off Pasir Panjang Road, at an average $608 psf.
A new residential development of up to 89,190 sq ft of gross floor area with a maximum building height of five storeys can be built on the Pasir Panjang Hill site, although Mr Lui points out that approval from the relevant authorities and a development charge will apply.
On the renewed interest in en bloc residential sites - there were over 30 in 2005 - Mr Lui believes there is still opportunity to ‘unlock the value of old and outdated property’.
He added: ‘The market value of the apartments at its current stage of obsolescence can only fetch a low market value reflected in the state of the property. Through the collective sales process, investors will be prepared to pay a higher value for the new apartments. In short, the difference between the two will be exactly the premium which the existing owners will be enjoying through the collective sale.’
Source : Business Times - 17 Jan 2006
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