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Two more District 9 sites launched for collective sale

Two more District 9 sites launched for collective sale.

TWO freehold developments in the prestigious Cairnhill enclave of prime District 9, completed in the 1980s, have been launched for collective sale through public tender.

Owners of the 36-unit Cairnhill Astoria in Cairnhill Rise are asking for at least S$196 million, while owners of the 18-unit Trendale Tower at Cairnhill Road have put up the development with a reserve price of S$163.52 million.

This translates a land rate of S$1,964 per square foot per plot ratio (psf ppr) for Cairnhill Astoria after factoring in an estimated development charge of S$16.34 million, and a land rate of S$2,250 psf ppr for Trendale Tower (which will not incur development charge).

In comparison, Cairnhill Heights was sold last month to a joint venture between Tiong Seng and Ocean Sky International at S$1,914 psf ppr, while Cairnhill Mansions was sold to Low Keng Huat (Singapore) at S$2,311 psf ppr in February this year.

Tang Wei Leng, managing director at Colliers International, said it is clear that collective sale interest among developers has shifted from the suburban to prime sites. Colliers is marketing Cairnhill Astoria.

"We think the high-end homes segment has turned a corner following a price slump since June 2013," she added.

Prices of luxury homes in the core central region continued to climb in Q1 2018, rising by 5.5 per cent over Q4 2017, according to data from the Urban Redevelopment Authority.

From January to May 15, 2018, there were 13 successful collective sale deals valued at over S$3.85 billion in Districts 9 and 10, up from five transactions worth S$870 million for the whole of 2017, Colliers estimated. A total of 26 residential collective sales worth S$8.3 billion have been transacted, surpassing last year's S$8.1 billion clocked from 27 residential collective sales.

Sitting on a 3,587.5 square metre (about 38,615 sq ft) site in prime District 9, Cairnhill Astoria's plot has a gross plot ratio of 2.8 under the Master Plan 2014. Subject to approval from the authorities, it can be redeveloped to offer about 200 apartments, based on an average unit size of 540 sq ft.

The property is near Orchard and Somerset MRT stations as well as popular schools. Based on the size of the property - ranging from 700 sq ft to 6,060 sq ft - each owner at Cairnhill Astoria could potentially receive between S$2.275 million and S$14.261 million if the deal goes through.

Trendale Tower is nearer to the Newton MRT interchange station. It occupies a land area of 2,016.8 sq m (or 21,708 sq ft), with a gross plot ratio of 2.8 under the 2014 Master Plan. It may be developed up to 36 storeys with an allowable gross floor area of 6,753.2 sq m (72,690 sq ft).

Each owner at Trendale Tower could get an average of S$9 million, said Suzie Mok, senior director of Investment Sales at Savills Singapore who is handling the sale.

Alan Cheong, head of research at Savills Singapore, noted that prices for prime properties in Singapore "are recharging for a major upward push".

"In this new pricing regime, benchmark prices achieved in the 2007-2012 period are either matched or perhaps re-rated higher," he said.

The public tender for Trendale Tower and Cairnhill Astoria will close on June 25 and 27 respectively.

Adapted from The Business Time, May 17, 2018.