The owners of Shunfu Ville in Marymount Road have reportedly secured the minimum consent required for the residential development to be launched for collective sale.
A former HUDC estate that was privatised, Shunfu Ville is a short distance from Marymount MRT station on the Circle Line and sits on a 409,000 sq ft site with a balance lease term of around 70 years, reported The Business Times.
The site features three 16-storey towers and three low-rise blocks, with unit sizes ranging between 1,668 sq ft and 1,776 sq ft.
The en bloc sale of the 358-unit development is being marketed by JLL. The owners controlling 80 percent of Shunfu Ville’s strata area and share value have agreed to the collective sale.
They are expected to receive over $700 million from the sale, which works out to a unit land price within the low $800 psf ppr range, inclusive of two payments to be made by the buyer to the state. One is a lease upgrading premium to top up the lease of the site to 99 years, while the other is a differential premium for developing a larger project on the site.
Zoned residential under the Urban Redevelopment Authority’s (URA) Master Plan 2014, the Shunfu Ville site has a plot ratio of 2.8. This means a new project could comprise 1,280 units with an average size of 850 sq ft.
It could be up to 36 storeys high, offering future residents unblocked views of the surrounding greenery and the MacRitchie Reservoir.
Based on its reserve price, the owners stand to gain over 50 percent more compared to what they could have received from selling the units individually.
Assuming a land price of $820 psf ppr, the breakeven cost for the new project could stand at around $1,300 to $1,400 psf for the winning bidder, according to market watchers.
Considering the scaleback in state land sales, the development should tempt deep-pocketed property developers looking to replenish their landbanks.
“Shunfu Ville has strong locational attributes but the question is what price developers are prepared to pay,” noted an expert.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email email@example.com