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Tulip Garden, Windy Heights join en bloc wagon

Tulip Garden owners seeking S$753 million while Windy Heights has a reserve price of S$806 million

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Tulip Garden in prime district 10 will be put up for collective sale via tender on Feb 28, with a reserve price of S$753 million.

Singapore

DEVELOPERS can add another two more freehold plots to the long list of en bloc projects being pitched to them, with Tulip Garden in Farrer Road and Windy Heights in Eunos launching collective sale tenders.

With seemingly no let up in the number of estates hopping onto the collective sale bandwagon, analysts expect the success rate of such deals to slow with developers getting more choosy as their landbanks fill up.

Residential en bloc sales in the first two months of this year have already topped S$3.1 billion, almost twice the S$1.66 billion seen in the last such market frenzy in 2007, according to Nomura analyst Sai Min Chow.

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This month alone saw Hoi Hup Sunway buying Brookvale Park for S$530 million, Macly Group taking Riviera Point for S$72 million, Low Keng Huat's purchase of Cairnhill Mansion for S$362 million and CapitaLand acquiring Pearl Bank Apartments for S$728 million.

For Tulip Garden owners, it will be a case of fourth time lucky if they succeed. In their first attempt in July 2007, the development was actually sold for S$516 million, but the deal fell through a year later when the buyer - a consortium led by Bravo Building Construction - backed out after trouble raising funds.

This time, the owners of Tulip Garden's 162 apartments and maisonettes and two shop units have set a reserve price of S$753 million for their development, which is near a Good Class Bungalow area and Holland Village.

The site, which has a gross plot ratio of 1.6 and an allowable height of up to 12 storeys, can be redeveloped for 670 new apartments averaging 790 sq ft in size, subject to relevant approvals.

The asking price works out to a land rate of S$1,486 per square foot per plot ratio (psf ppr) for the 29,423.2 square metre (316,708 square foot) redevelopment site, said Colliers. There is no development charge payable.

With the inclusion of an additional 10 per cent bonus gross floor area for balconies, the land rate would be reduced to S$1,399 psf ppr after factoring in approximately S$26.6 million in development charge.

Marketing agent Colliers International said this land rate is attractive compared to the prices of recent successful collective sale deals in District 10, including The Wilshire (S$1,536 psf ppr), City Towers (S$1,847 psf ppr), Crystal Tower (S$1,840 psf ppr), Royalville (S$1,960 psf ppr) and Jervois Gardens (S$1,511 psf ppr).

Tulip Garden owners stand to receive between S$3.6 million and S$6.3 million if there is a successful sale, depending on the size of apartments there which range from 158 sq m to 317 sq m (1,701 sq ft to 3,412 sq ft).

Said Mr Ng Kee Wah, chairman of the collective sale committee: "The owners feel that this is an opportune time to put the development up for sale, riding on the positive sentiment and upturn in the private housing market as well as the raging collective sale fever."

The en bloc tender of Windy Heights will see one of the largest freehold residential redevelopment sites in District 14 coming on the market, said its marketing agent, Knight Frank Singapore.

The property along Jalan Daud comprises four blocks of 192 apartment units, eight penthouses and two commercial units.

The 23,291 sq m (250,702 sq ft) site can be redeveloped to accommodate 581 apartments of 100 sq m per unit, based on the current built-up gross floor area (GFA) of 58,150.74 sq m. No development charge is payable.

The site is a 15-minute drive to the Central Business District (CBD) and Changi International Airport. It is also two MRT stops to Paya Lebar Business Hub, three MRT stops to Changi Business Park, and eight stops to the Central Business District.

The reserve price for the development is S$806.2 million, which translates to a land rate of $1,288 per sq ft per plot ratio (psf ppr). With the inclusion of a 10 per cent bonus balcony GFA, the land rate works out to S$1,171 psf ppr, said Knight Frank.

Said its executive director & head of investment and capital markets, Ian Loh: "There also isn't much impending supply in Kembangan and the Bedok area in Districts 14 and 16 from land sales and collective sales, hence new launches in the area are likely to be sought after in lieu of the low supply."

The tender for Tulip Garden closes at 3pm on April 11, while that of Windy Heights will close at 2:30pm on April 18.