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Thread: For sale: Former HUDC estate in Eunos

  1. #1

    Default For sale: Former HUDC estate in Eunos

    For sale: Former HUDC estate in Eunos

    Owners at Eunosville in Sims Avenue expect offers of between $643 million and $653 million, which translates to about $780 to $790 per sq ft per plot ratio.

    Apr 13, 2017

    An HUDC estate in Eunos that has been privatised has gone on the market, just days after a similar estate in Hougang was put on sale.

    Owners at Eunosville in Sims Avenue expect offers of between $643 million and $653 million, which translates to about $780 to $790 psf per plot ratio (psf ppr).

    That could make the 330-unit Eunosville the largest collective sale in recent years, surpassing the $638 million paid for Shunfu Ville last year, said marketing consultant OrangeTee yesterday. It would also dwarf Rio Casa in Hougang, which went on sale with expectations of more than $450.8 million, or about $586 psf ppr.

    The asking price for Eunosville includes a top-up premium of about $181 million for a new 99-year lease and for intensification of the 376,713 sq ft site, which is less than 100m from the Eunos MRT station.

    Eunosville owners, who reached the requisite 80 per cent consent needed for the collective sale in less than four months, would each get around $1.9 million to just over $2 million.

    The estate, which has 70 years left on its lease, has 225 maisonettes in 10 blocks and 75 walk-up apartments across four blocks. The strata floor area for a maisonette is between 156 and 165 sq m (1,679 to 1,776 sq ft), and apartment sizes are from 152 to 160 sq m.

    A redevelopment could yield about 1,035 units, with an average size of 90 sq m each.

    Mr Alex Oh, OrangeTee's director of business solutions, said selling prices would be in the region of $1,450 psf for a new condominium with a breakeven level of about $1,250 psf.

    Mr Marcus Oh, OrangeTee's executive director of business solutions, said: "The recent tweak to the cooling measures has injected some optimism into the residential market... Strong sales results at recent launches such as Grandeur Park Residences... show buyers are still keen to invest in projects with strong locational attributes such as proximity to MRT stations."

    He pointed out that 420 units at Grandeur Park Residences were sold within the first weekend of launch at a reported average price of $1,350 psf.

    While developers see the en bloc process as a viable source of sites in good locations, their bids will be realistic, given building completion and sales deadlines imposed by the qualifying certificate and additional buyer's stamp duty.

    Mr Ong Kah Seng, director of R'ST Research, said: "Developers and sellers are realistic in selling prices, and not capitalising on improved buying sentiment.

    "Developers seem to be keen on collective sales recently because they are running low in land inventory... they will need land for development or at least have some sites... to reflect longer-term corporate and business objectives."

    Eunosville was privatised in 2011 and had its second en-bloc attempt in 2013. The first bid failed after it was hit by new rules governing home loans.

    The tender for Eunosville closes at 3pm on May 31.

  2. #2

    Default Eunosville latest ex-HUDC estate to be put up for collective sale

    Eunosville latest ex-HUDC estate to be put up for collective sale

    It may be the largest to be collectively sold in a decade based on its asking price of S$643m-S$653m

    Thursday, April 13, 2017

    by Lynette Khoo

    OWNERS of 330-unit Eunosville have put up their former HUDC (Housing and Urban Development Company) estate for sale - the third residential development to be launched en bloc this year.

    Based on its asking price of S$643 million-S$653 million, Eunosville stands to be the largest former HUDC estate to be collectively sold in a decade after Farrer Court was sold for a record S$1.34 billion in 2007 to CapitaLand.

    As a sign of continued momentum in the en bloc market, the launch of Eunosville came on the heels of this week's launch of Rio Casa, another privatised HUDC estate in Hougang; and One Tree Hill Gardens, a prime freehold development in District 10, in January.

    Eunosville consists of six maisonette blocks of 255 maisonettes and four walk-up apartment blocks with 75 apartments. It was built in the late 1980s with a balance lease of about 70 years.

    The site is almost rectangular in shape with wide frontage onto Changi Road and Sims Avenue. It has a land area of about 34,997.8 sq m and a redevelopment could potentially yield about 1,035 units with an average size of 90 sq m.

    A differential premium of about S$181 million is expected to be paid to the government for topping up the lease to a fresh 99-year lease and the intensification of the site to a gross plot ratio of 2.8.

    Including the differential premium, the per square foot cost for the developer works out to be S$780 to S$790 per square foot per plot ratio (psf ppr), according to OrangeTee, the sole marketing agent for the tender. This translates to an estimated break-even pricing of S$1,250 psf.

    "With the recent successful launches of the two nearby projects at Park Place Residences and Grandeur Park Residences, a developer can expect to fetch selling prices in the region of S$1,450 psf for a new condominium on site," said OrangeTee director of business solutions Alex Oh.

    "We believe Eunosville will generate good interest from developers given its excellent connectivity being right next to the Eunos MRT Station and to major expressways. The site offers a developer an opportunity to acquire a site just one station from Paya Lebar Central which is set to become a vibrant commercial hub," Mr Oh added.

    This marks the second collective sale attempt by the owners of Eunosville. The mandate from owners of more than 80 per cent of strata area and share value was achieved in less than four months. The tender for Eunosville closes on May 31 at 3pm.

    Property consultants have said that the tight supply of private housing sites at state tenders and strong demand for land by developers bode well for en bloc sales this year.

    The uptick in the collective sales market last year, with three residential sites Shunfu Ville, Raintree Gardens and Harbour View Gardens sold for S$638 million, S$334.2 million and S$33.25 million respectively, has led to increased optimism and interest among owners of potential collective sale sites.

    Rio Casa, also a former HUDC estate, was on Monday put up for collective sale by its marketing agent Knight Frank Singapore. The owners of the river-fronting estate along Hougang Avenue 7 are expecting offers of more than S$450.8 million.

    Knight Frank is also the marketing agent for One Tree Hill Gardens, which was launched for collective sale in January for at least S$72.8 million. It has not been sold yet but there are "serious discussions" underway, said Knight Frank head of investment and capital markets, Ian Loh.

    Mr Loh noted that while there are more residential owners starting to look for en bloc potential, their properties are more likely to come to the market next year.

    In the current known pipeline, the mandated 80 per cent consensus among owners is being sought at Dunearn Court in prime district 11, Amber Park in Katong, Cairnhill Mansion in District 9, Villa D'este in District 10 and Florence Regency (former HUDC at Hougang Avenue 2).

    Meanwhile, there are also mixed-use and commercial sites up for collective sales.

    A mixed-use development, Goh & Goh Building at Upper Bukit Timah Road, was launched by JLL this year with an asking price of at least S$120 million; a collective sale is still under negotiation. The landmark Katong Shopping Centre is also looking for buyers with a reserve price of S$630 million, after plans to develop the site into a mall with serviced apartments have been approved.

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