The Cairnhill area in prime District 9 is turning into a collective sale hot spot with a third site about to hit the market in a little over two months.
The latest candidate is Cairnhill Heights, a freehold private site in Cairnhill Rise that is a short drive from the Orchard Road shopping belt and Mount Elizabeth Hospital.
Cairnhill Mansions and an adjacent freehold site were launched for collective sale in October for a combined price tag of $477 million.
The much smaller Cairnhill Heights – with only 19 units – will be launched for tender on Dec 19, with a price tag of more than $80 million.
This reflects a land rate of about $2,045 per sq ft per plot ratio (psf ppr), inclusive of a development charge of $8.2 million payable for a plot ratio of 2.8. The site has a gross plot ratio of 2.8.
Cairnhill Heights was built in the 1990s and sits on about 15,408 sq ft.
Marketing agent ERA Realty Network said the land could be redeveloped up to a gross floor area (GFA) of 47,455 sq ft, reflecting an equivalent plot ratio of 3.08.
In order to maximise the plot ratio potential of 3.08, an estimated development charge of $12.7 million would be payable.
Ms Christine Li, Cushman & Wakefield’s head of Singapore research, said the break-even price for the incoming developer would be around $2,700 to $2,800 psf.
If an additional 10 per cent bonus GFA is included, the break-even price would drop to about $2,500 to $2,600 psf.
“Cairnhill Heights is located in a mature residential precinct where there are not many redevelopment sites left,” said ERA group division director Jeremy Rikas Chiu.
“The development can be rebuilt into an upscale two-bedroom boutique residential project with approximately 42 units, assuming an average apartment size of 1,100 sq ft.”
About 26 collective sales worth $8 billion have been awarded this year, a steep jump compared with last year’s three deals worth $1 billion.