Gilstead Mansion relaunches collective sale tender at S$65m

GILSTEAD Mansion has been relaunched for collective sale tender at S$65 million, or S$3 million lower than its guide price announced in June, as its owners hope to beat both the chill of cooling measures as well as the clock before new guidelines on the maximum number of allowable units outside the central area set in.

The revised price translates to S$1,524.70 per plot ratio, with no DC payable, for the 24-unit development in the Novena area. The development has a land area of 35,751 sq ft and an existing gross floor area of 42,632 sq ft. 

Gilstead Mansion is part of the Stevens-Chancery area which will face an increased average unit size of 100 sq m if a development application is submitted to authorities on or after Jan 17, 2019. Under the current 70 sq m guideline, about 56 units could be redeveloped on the site, and according to marketing agent Teakhwa Real Estate, the Land Transport Authority has written to confirm that Pre Application Feasibility Study for traffic impact for the site is not required.

"The expected land rate is undemanding in view of the high price transacted for the surrounding Dunearn Gardens at S$1,962 psf and the 99-year leasehold Chancery Court at S$1,610 psf," Teakhwa Real Estate said in a statement.

"This is an opportunity for developers who target good smallish prime sites at reasonable pricing in this en bloc cycle. The potential buyer may possibly make it on time to develop the site under the current Urban Redevelopment Authority planning guidelines."

Authorities have revised guidelines so that the average size of new private flats outside the central area will have to be at least 85 sq m. Nine areas will face the the 100 sq m guideline. Besides Stevens-Chancery, those areas are Marine Parade, Joo Chiat-Mountbatten, Balestier, Telok Kurau-Jalan Eunos, Pasir Panjang, Kovan-How Sun, Shelford and Loyang.

The tender will close on Nov 22 at 2pm.

Teakhwa Real Estate also said that owners at the freehold Balestier Regency have started to sign to lower the reserve price from S$218 million to S$190 million in a bid to make the site "more viable and appealing to potential developers". Balestier Regency also falls under the areas that will face the 100 sq m rule.