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Thread: Royalville in Bukit Timah priced at S$368m in collective sale

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    Default royalville (bukit timah) starts enbloc

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    Default Royalville in Bukit Timah priced at S$368m in collective sale

    Two more condos move closer to selling en bloc

    Oct 13, 2017

    Grace Leong

    The collective sale fever rages on, with another estate ready to chance its arm while freehold Royalville condominium in plush Bukit Timah hit the market yesterday.

    The new candidate is the Cashew Heights condominium in Upper Bukit Timah Road, whose owners formed a sales committee, albeit on their third try.

    The 999-year leasehold development, which has 596 apartments and three shops on a sprawling 953,000 sq ft site, garnered about 62 per cent of votes in support of the formation of a committee on Oct 7. It will hold an extraordinary general meeting next month to select a marketing agent and a lawyer.

    Built in 1990, the condo is near Cashew MRT station, Bukit Panjang Primary School and the Bukit Panjang Plaza and Junction 10 malls.

    "Our built-up plot ratio is estimated to be 1.16, but our allowed plot ratio is 2.1. There is potential for maximisation of land usage for the developer," said Mr David Wong, vice-chairman of the Cashew Heights collective sales committee.

    Dr Lee Nai Jia, head of research at Edmund Tie & Company, noted that there is an "upcoming site at Hillview Rise under the Government Land Sales programme, which may divert developers' interest".

    Meanwhile, district 10's Royalville in Bukit Timah Road was launched yesterday with an asking price of $368 million, reflecting a land rate of $1,509 per sq ft per plot ratio. No development charge is payable. The tender closes on Nov 10.

    Built in the 1980s, Royalville has 93 units and 11 shops. The 174,176 sq ft site has a gross plot ratio of 1.4 so it can accommodate a project of up to 323 units. Ms Swee Shou Fern, senior director, investment advisory at Edmund Tie, the estate's marketing agent, said: "There has not been any freehold site of this size available for sale at Bukit Timah in the last 10 years."

    Its attributes include a good location, coveted freehold tenure and proximity to Sixth Avenue MRT station. "It's a very nice site, and the total quantum can be easily taken up by many developers," said Mr Tan Hong Boon, regional director at JLL.

    He noted that there have been more larger deals concluded this year compared with previous cycles, with the average transaction size hitting $365 million. "That's the highest since the process began in 1994, with the exception of the one deal done in 2015 - Thong Sia Building - at $380 million," he said.

    There have been 16 collective sale deals done this year, with total transaction value nearing $5.8 billion, JLL said. That compares with 78 deals valued at $7.8 billion in 2006 and 88 deals at $11.5 billion in 2007.

    Mr Alan Cheong, senior director of research and consultancy at Savills, said: "There are hundreds of owners becoming instant millionaires every month, thanks to collective sales. With interest rates on the rise, many of them may downgrade to the HDB market to get homes of the size they are used to. Resale HDB prices may well start to move up."

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    Royalville in Bukit Timah priced at S$368m in collective sale

    Meanwhile, owners of Cashew Heights making first move towards en bloc sale of their condo near Bukit Panjang

    Fri, Oct 13, 2017

    Lynette Khoo

    Kalpana Rashiwala

    ROYALVILLE, a prime freehold residential site in Bukit Timah Road, has been launched for a collective sale by owners asking for S$368 million.

    This reflects a land rate of S$1,509 per square foot per plot ratio (psf ppr), with no development charge payable, said its marketing agent Edmund Tie & Company (SEA).

    Including the 10 per cent bonus balcony gross floor area that could incur an estimated development charge of S$1.16 million, the land rate may be lower at S$1,376 psf ppr.

    The tender, which will close on Nov 10, joins a spate of sites that have been launched for collective sale this year. Already, 16 collective sales year-to-date have clocked over S$5.84 billion in gross proceeds.

    Another project that will be launched in about two weeks' time in the Bukit Timah area is Mayfair Gardens, which has crossed the 80 per cent backing from owners for a collective sale.

    Knight Frank, which is marketing the collective sale of the 99-year leasehold development, declined to reveal the asking price for now.

    Touting the site attributes of Royalville, Edmund Tie & Company noted that there has not been any freehold site of this size available for sale at Bukit Timah in the last 10 years.

    "We are expecting very keen interest for Royalville given its strong location and site attributes including the coveted freehold tenure, highly desirable Bukit Timah Road address, proximity to the MRT and its large grounds which allow the developer to design an upscale condominium of up to 323 residential units with comprehensive suite of facilities," said Swee Shou Fern, senior director for investment advisory at Edmund Tie & Company.

    Observers note that the estimated land rate of S$1,376 psf ppr for Royalville may translate to a breakeven price of S$1,950-2,100 psf and selling price in the range of S$2,150-2,500 psf.

    Transactions of apartments in nearby projects The Asana, Leedon Residence and Cluny Park Residence have largely been in the range of S$2,000-S$2,400 psf over the past one year, based on caveats lodged.

    JLL regional director of investments Tan Hong Boon noted that by virtue of the location and quantum of the Royalville site, it is going to attract a lot of interest.

    "Quantum-wise, it is a price point that many developers can afford," he said. Because it's a medium-size project, developers do not have to worry about the five-year deadline to sell out a project to qualify for remission of additional buyer's stamp duty on land cost.

    Built in the 1980s, Royalville comprises 93 residential units and 11 shop units. The District 10 property, which sits on a land parcel of 16,181.5 sq m, is zoned residential with a gross plot ratio of 1.4 under Master Plan 2014.

    It is within 260 metres of Sixth Avenue MRT Station, and enjoys proximity to a wide array of amenities and distinguished schools including Raffles Girls' Primary School, Methodist Girls' School (Primary), Nanyang Primary School, Hwa Chong Institution and National Junior College.

    Further west in Toh Tuck Road, owners of freehold condominium project Goodluck Garden have appointed Knight Frank as their marketing agent, and over 60 per cent of owners by share value and strata area have voted in favour of the collective sale agreement so far.

    Over in the Cashew Road/Bukit Panjang area, owners of Cashew Heights have just hopped onto the enbloc sale bandwagon. They held their first extraordinary general meeting on Oct 7 during which owners controlling 62.25 per cent of share values and strata area voted in favour of starting the en bloc sale process by electing the collective sale committee.

    The 999-year leasehold estate has a land area of about 953,000 sq ft. It is zoned for residential use with 2.1 plot ratio under Master Plan 2014. The estate comprises 596 apartments and three shop lots in 12 blocks.

    David Wong, vice-chairman of the sales committee, declined to disclose the asking price for the property until after the appointments of marketing agents and lawyers. "But we are going to exceed the price for Farrer Court," he added.

    Farrer Court was sold in 2007 for S$1.34 billion in 2007, with a further combined estimated sum of S$470 million payable by the developer to the state in differential premiums for intensifying the site and lease top-up.

    "In terms of both land area and value, we are the biggest 999-year/ freehold residential property near an MRT station going for an en bloc sale, at this juncture," said Mr Wong.

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