Yet another property development has been put up for sale.
Owners of the 226-unit freehold property along Farrer Road known as Spanish Village are asking for $882 million, jumping on the bandwagon of collective sales hopefuls in the prime districts.
There are at least 10 other launched redevelopment sites in the prime districts waiting for buyers.
Edmund Tie & Company, the marketing agent for Spanish Village, said the asking price for the freehold residential site reflects a land rate of $1,721 per sq ft per plot ratio, inclusive of a development charge of about $30 million.
Built in the 1980s and spanning 331,457 sq ft, the site is zoned for residential use with a gross plot ratio of 1.6.
“With all the surrounding good schools and proximity to lifestyle options and the CBD, the location holds great appeal for families with school-going children and expatriates alike,” said Edmund Tie & Company’s senior director of investment advisory Tan Chun Ming. “URA’s recent tender award of the Holland Village GLS (government land sale) site for a mixed-use and pedestrian-oriented development will also add to the vibrancy of the locale.”
JLL senior consultant Karamjit Singh noted that the en bloc upswing from 2016 to date has been led by the lower end of the private residential market, with strong demand for mass-market homes and shortage of land kick-starting the en bloc wave.
As land prices rose for the lower end of the market, the upper tiers of the market are starting to look relatively under-priced. This in turn has spurred collective sales in the medium to upper-end segments.
But he pointed out that prime land does not interest all types of developers. “Some would prefer mass-market sites as they are good at building such homes.
“They also feel the demand for affordable homes is much wider, as such projects mainly cater to HDB upgraders to whom additional buyer’s stamp duty (ABSD) and total debt servicing ratio are lesser of an issue.
“On the other hand, developers who specialise in the luxury end would welcome opportunities to build what they are good at,” Mr Singh said, adding that Singapore’s luxury home market still compares favourably to several global peers, despite ABSD payable by foreigners.
Savills Singapore senior director Alan Cheong noted that the flavour of the season has swung to prime districts as developers have stocked up their landbank with suburban and city-fringe sites.
The prime property owners have also been waiting for prices to rise before pushing their units for collective sale, he said.