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Dunearn Gardens finds collective sale success on third attempt

Dunearn Gardens finds collective sale success on third attempt.

The collective sale frenzy continues unabated as Dunearn Gardens, a 114-unit freehold residential development located off Newton Road, becomes the latest to be sold on its third attempt.

The sale was made to a fully owned subsidiary of EL Development Pte Ltd - the property arm of building firm Evan Lim Group - for S$468 million.

Dunearn Gardens comprises three adjoining residential blocks, with apartment units ranging from 75 to 306 square metres. Surrounded by Good Glass Bungalows, landed homes, high rise condominiums and a 150-metre walk away from Newton MRT Station, it has a site area of 8,866.9 sq m, or 95,442 sq ft.

Each apartment owner will stand to receive a gross sale price of about S$2.69 million to S$7.98 million upon a successful sale, said property consultancy Knight Frank in a statement.

EL Development is expected to incur a development charge of about S$43.6 million to redevelop the site to a gross plot ratio of 2.8, based on the maximum permissible gross floor area of about 267,239 sq ft.

The sale price translates to a land price of about S$1,914 per square foot per plot ratio (psf ppr), said Knight Frank. Including a 10 per cent bonus balcony which would raise the proposed plot ratio to 3.08, the land price would be about S$1,841 psf ppr, though this is subject to the authorities' approval, it added.

Lim Yew Soon, EL Development managing director, said the group intends to redevelop the site into a 34-storey luxury condominium comprising 348 units, which have between one and four bedrooms.

Knight Frank executive director and head of investment and capital markets Ian Loh said that the new high-rise development will enjoy unobstructed views of the city.

"We believe the new development will appeal to owner-occupiers and investors given its choice location right at the city fringe," he added.

Dunearn Gardens collective sale committee deputy chairman Petras Tsui noted that this was the committee's third attempt at a collective sale. He said he appreciated the strong support rendered by fellow owners, consultants and lawyers during the journey.

EL Development had in January this year also acquired Singtel's Hill Street site for S$118 million, which it is planning to develop into a mid- to high-end business hotel with more than 300 rooms.

Its last residential site purchase was from the government land sales programme in August 2015, which it is developing into the 752-unit condominium project Parc Riviera in West Coast Vale. There is only one returned unit left for sale in both Parc Riviera and the 660-unit condominium project Symphony Suites in Yishun, said Mr Lim.

Knight Frank said it is also scheduling the launch of another collective sale site - Kemaman Point, a freehold condominium development in the vicinity of Balestier Plaza and Shaw Plaza - for sale by tender in early May.

Adapted from The Business Times, Apr 23, 2018.