Mayfair Gardens, a residential redevelopment site off Dunearn Road in Bukit Timah, is being launched for collective sale on Monday with a reserve price of S$265 million.
This translates to a land rate of S$1,058 per square foot per plot ratio (psf ppr), including an additional lease top-up premium of S$43.7 million payable to the state for a fresh 99-year lease.
With the inclusion of a 10 per cent bonus balcony gross floor area (GFA), the land rate may work out to about S$961 psf ppr, subject to the authorities’ approval.
With a site area of 19,368 sq m (208,475 sq ft), Mayfair Gardens has a residential gross plot ratio of 1.4. This allows redevelopment potential to reach up to a maximum permissible GFA of about 291,865 sq ft. The site currently houses six residential walk-up blocks of 124 apartment units ranging from 100 sq m to 200 sq m.
Based on the reserve price, each owner will receive gross sales proceeds of S$1.45 million to S$2.46 million. The tender for Mayfair Gardens will close on Nov 16.
The immediate vicinity is mainly surrounded by Good Class Bungalows, landed homes and condominiums. It is also near good schools and is well-connected to other parts of Singapore via major arterial roads and expressways.
With the opening of the Downtown Line, the Bukit Timah area has become extremely convenient and a more coveted address.
Some consultants are expecting a breakeven price of around S$1,600 psf and a selling price of above S$1,800 psf for the new project on the site. Some 300 units could be built in the new project if the average size is 90 sq m and around 387 units if the average size is 70 sq m.
So far, 18 collective sales worth S$6.72 billion this year comprising mainly residential developments have closed, with over 2,700 existing homes expected to be taken out of the market. Over 10,000 new homes are estimated to be built on these sites.
More potential collective sale sites are in the works.
Nearer to Botanic Gardens, owners at freehold Shelford Green are asking for S$$140 million or S$1,505 psf ppr with no development charge expected to be payable.
The 66,392 sq ft site has a gross plot ratio of 1.4 and now houses 33 apartments.
Although the land rate is rich, the projected quantum for Shelford Green is small enough for smaller developers to bite. Yet, due to the prime location, it is likely to draw established developers with strong branding in developing high-end projects such as Wing Tai, UOL Group and Allgreen. The breakeven pricing is estimated to be in the range of S$2,100-2,200 psf.
Adapted from: The Business Times, 23 October 2017