Its 168 owners have plenty to celebrate. The price exceeded their reserve of $171 million and each will get an average $1.089 million for their unit, at least 85 per cent above market value, said sale manager Knight Frank.
‘For a 99-year site, it’s a record price,’ said Ms Tang Wei Leng, director of property consultancy DTZ Debenham Tie Leung.
Far East Organization outbid rivals City Developments, Wing Tai and MCL Land for the Katong site in a tender process that closed on Tuesday.
Its price translates into $396 per square foot per plot ratio (psf ppr), after accounting for a development charge of about $35.2 million and a differential premium of $23.8 million to top up the lease from 71 years to 99 years.
Knight Frank said the price indicates ‘developers’ confidence in the property market’. The price also surpassed recent prices of nearby sites. Centrepoint paid $280 psf ppr in 2001 for a nearby 99-year leasehold site, which is now home to the 612-unit Cote d’Azur next to Parkway Parade.
Recent freehold collective sales in the Katong area were also made at lower levels: Maryland Point site went for $351 psf ppr and the Sea View condominium site for about $370 psf ppr.
Knight Frank said the Amberville site is a ‘rare and substantial’ one where Far East can capitalise on the unblocked views of the sea and East Coast Park.
Amberville is likely to break even above $600 psf to $650 psf. Knight Frank said it can accommodate a condominium of up to 36 storeys, with 474 units of 1,200 sq ft on average each.
The firm also brokered the sale of Eng Cheong Tower, the first 99-year leasehold property to be sold en bloc, and the deal that sparked interest in collective sales of such leasehold properties.
Other ex-HUDC estates, such as Pine Grove and Farrer Court, also hope to land a collective sale.
Next week, the tender closes for the 342-unit Minton Rise – the first ex-HUDC estate to get in-principle approval for a lease top-up to 99 years.
|Developer:||Marina Green Ltd|
|# of Floors:||21|
|# of Units:||383|
Martin Koh : +65-86666 944
Sherry Tang: +65-9844 4400