Latest collective sale site boasts size and location
ANOTHER day, another sale en bloc.
But this one has caught the property sector’s eye for its size, prime location - and potential payoff for the lucky owners.
The sale of freehold 114-unit Casa Rosita in Bukit Timah could reap the owners $1.7 million each if the property meets their asking price of $300 million. That is 70 per cent above the last sale in the block - a 118 sq m unit that sold last July for $1 million.
The property has huge potential, given its choice location and size - at 267,425 sq ft, it is the largest residential collective site to go on sale in a prime district.
CB Richard Ellis (CBRE) will be marketing it in Hong Kong, China and Indonesia from Monday but the firm has already received interest from a major, privately held Hong Kong-based developer that has residential projects here. Tenders close on March 22.
The previous largest site was the 243,796 sq ft Belle Vue in Oxley Walk, sold by CBRE to Wing Tai last October for $227.3 million. CBRE said it also marketed Belle Vue overseas.
Sentiment in the luxury property market has clearly picked up and recent collective sale deals done at better-than-expected prices have encouraged many owners to revise their asking prices, said consultants.
About 84 per cent of the owners of Casa Rosita agreed to the collective sale, initially demanding $255 million for the property last year. But they revised their asking price to $300 million in line with the recent upswing in luxury home prices.
This prices the block at about $752 per plot ratio inclusive of an estimated development charge of $21.7 million.
Casa Rosita, which was developed by City Developments and completed in 1986, has units ranging in size from 118 sq m to 299 sq m. Its sale is just the latest in what is already turning out to be a busy year.
At least seven collective sale sites were launched in January while this month, sites such as Haig Gardens in Katong and Kai Sheng Court together with an adjoining pair of semi- detached houses at Mar Thoma Road were launched for sale.
And these come after what was a record year for collective sales of residential sites in 2005.
The increased demand has already had an effect on price. Far East Organization last week bagged the freehold Angullia Mansion off Orchard Boulevard for $120 million or about $1,060 per sq ft (psf) per plot.
This compares with the price of $1,020 psf per plot for the prime Orchard Turn site.
DTZ Debenham Tie Leung investment director Tang Wei Leng said of the sale: ‘We have probably achieved the first significant benchmark transaction of the year which is set to boost market confidence.’
Meanwhile, a handful of contractors and developers have placed bids for a collective site at Braddell Park. Its tender closed yesterday.
Source : Straits Times - 16 Mar 2006
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