Lee family of OCBC selling 6 semi-Ds at S$43.18m

Singapore

PULAU Properties - owned by the Lee Foundation and members of the Lee family that founded OCBC Bank - is selling 3 pairs of semi-detached houses on a freehold site in Coronation Road West for S$43.18 million.

The price for the District 10 property works out to S$2,000 per square foot on the land area of 21,587 sq ft.

The buyer is understood to be a Singaporean in his early 30s and whose family is in the marine fuel logistics business.

Pulau Properties owns another 3 pairs of semi-detached houses on the adjacent plot, which has a land area of 15,723 sq ft.

The company developed the 12 houses on the 2 sites, completing them around 2000 and has held them for rental income. All 12 homes have two storeys and an attic. Five of the 6 houses on each plot are currently leased.

BT understands that both sites were put on the market for sale via private treaty in a low-key fashion around August/September this year.

Savills Singapore director of investment sales and capital markets, Yap Hui Yee, is understood to have brokered the S$43.18 million sale of the first plot.

It can be potentially redeveloped into 6 semi-detached houses, or 5 bungalows, subject to approval by the authorities.

However, William Wong, founder of boutique property agency Realstar Premier, said it is "highly unlikely" the buyer will redevelop the site.

"The semi-Ds are still well renovated and in move-in condition. Besides, the purchase price of S$2,000 psf on land area does not provide much upside in building a brand-new product and selling it in the current market.

He estimates that the land, miscellaneous items and construction costs will amount to "about S$10-ish million" per new semi-detached house. This may not leave much profit margin given that a brand-new semi-D on land area of 3,600 sq ft in the locale is likely to fetch S$10.5-11 million currently, he added.

Market watchers expect Pulau Properties to raise its price expectation for the second plot.

It can be redeveloped into 6 semi-detached houses, or 3 bungalows.

Under the Urban Redevelopment Authority's Master Plan 2019, both plots are in an area designated for 2-storey semi-detached housing. However, bungalows may also be built in any designated landed housing area including semi-detached housing areas.

Observers note a key attraction to a buyer of either of Pulau Properties' 2 sites: there is a single title for each of the sites, so 6 houses can be bought under 1 name, resulting in savings on additional buyer's stamp duty if applicable.

The sites are near Nanyang, Raffles Girls and Henry Park primary schools.