Undaunted by the lacklustre en bloc residential sale market this year, a freehold condominium in the Novena area has launched a collective sale. Derby Court, a 35-year-old, 12-storey development comprising 20 apartments, has given an indicative price of S$68.28 million, or S$1,286 per square foot per plot ratio (psf ppr), based on an allowable gross floor area of 53,094 sq ft.
The land rate would be lowered to about S$1,169 psf ppr, including the 10 per cent bonus gross floor area allowed for balconies.
The 18,500 sq ft site at 5 Derbyshire Road, which is off Thomson Road and near United Square shopping mall, can potentially accommodate up to 70 apartments averaging 753 sq ft; the breakeven cost will exceed S$1,700 psf, said Savills Singapore, which is handling the sale.
No development charge needs to be paid because of the high development baseline which reflects a plot ratio of 2.869. The site is zoned “residential” with a plot ratio of 2.8 under the 2014 Master Plan.
The tender will close at 3pm on Jan 20, 2015.
The site is near Novena MRT station, Orchard Road and the central business district; it is also within 1km of popular schools such as St Joseph’s Institution (Junior) and Anglo Chinese School (Junior).
Suzie Mok, senior director of investment sales at Savills Singapore, said: “Sites with absolute price quantum of less than S$70 million for a high-rise 36-storey development are few and far between. This is a sweet spot to boutique developers in the present market.”
She added that Derby Court’s prime city-fringe location would give investors “good rental potential and long-term capital appreciation”.
The Novena neighbourhood is a medical hub, home to Mount Elizabeth Novena Hospital, Novena Medical Centre, Novena Specialist Centre and Tan Tock Seng Hospital. The upcoming Royal Square at Novena and the government’s masterplan for the future Health City Novena will boost the area as a medical tourism hub, Savills said.
Derby Court’s en bloc attempt follows that of Fragrance Court, put up for tender at a reserve price of S$70 million (about S$1,235 psf ppr) last month.
Galven Tan, director of investment properties at CBRE, told The Business Times that the tender, which closed last Wednesday, received “no proper bids”, but a few expressions of interest had come in.
The en bloc attempt has since entered a 10-week private treaty period, and talks with parties are ongoing. The collective sale agreement expires next year.
Last month, it was also reported that the owners of Cairnhill Mansions, an ageing District 9 property, are launching their fourth attempt at a collective sale. The owners previously failed to find a buyer at the reserve price of $361.5 million (S$2,308 psf). This year’s attempt at a collective sale follows previous attempts in 2005 and 2007.
The site could hold up to 70 apartments averaging 753 sq ft and with a break-even cost exceeding S$1,700 psf, said Savills Singapore.