Savills achieved S$429 million in collective sales in year 2013 with the collective sale of 251-251F Pasir Panjang Road.
Savills Singapore is pleased to announce the sale of a plot of land on Pasir Panjang Road for S$29 million to a local boutique developer. This brings Savills total transaction volume in collective sales for year 2013 to S$429 million.
Located along the main Pasir Panjang Road, the near trapezoidal freehold site of 27,589 sq ft lies within an upcoming popular residential enclave of low-rise apartments, townhouses and landed housing. The development, more than 25 years of age, comprises a single block of 7 townhouses with a strata area of 2,680 sq ft each. It is zoned for residential development with allowable plot ratio of 1.4 under the Master Plan 2008. Possible redevelopment options include a boutique residential development with a maximum building height of 5 storeys or a strata cluster housing scheme.
A development charge of approximately S$11.58 million is payable to maximise the permissible gross plot ratio of 1.4. There is potential for the developer to alienate a state land of approximately 763 sq ft for amalgation with the site. The sale price of S$29 million represents a unit land rate of about S$1,033 psf ppr factoring the estimated development charge and land premium.
There is 100% consensus to the land sale and completion of sale is expected in early 2014.
“Well located freehold residential plots will continue to remain popular with the smaller boutique developers who need to replenish their landbanks. In particular sites with 100% consent to the sale or under single ownership will appeal to this market segment due primarily to their affordable quantum as well as certainty in terms of acquisition process.” said Suzie Mok, senior director of Investment Sales, Savills Singapore, who brokered the deal.
Steven Ming, deputy managing director of Savills Singapore further commented, “2014 may auger well for collective sales. The reduced availability of GLS sites this year will drive developer demand into collective sale opportunities. However, not all sites put up for sale will be successfully sold. Developers will continue to remain measured in their bidding”.