Summer Green condo hits collective sale market at S$48m

Two freehold central sites up for en bloc

24-unit Summer Green being marketed for S$48m; while 31-unit Chancery Esquire is looking at above S$86.6m

Jul 17, 2018

SUMMER Green is the latest condo to hit the collective sale market with a reserve price of S$48 million.

The reserve price translates to a land rate of approximately S$1,178 per square foot per plot ratio (psf ppr), inclusive of a development charge of approximately S$320,000, for the freehold site with 24 apartments.

Owners at the 13-storey condo off Balestier Road could net themselves about S$2 million per unit. The development, which spans 14,646 sq ft, has an approved plot ratio of 2.8.

Subject to approval from authorities, the development's maximum permissible Gross Floor Area (GFA) of approximately 41,010 sq ft could yield 54 apartment units with an average size of 753 sq ft.

Marketing agent Knight Frank said in a statement that the development enjoys unobstructed views of landed houses along Boon Teck Road. It is well-served by the Pan-Island Expressway (PIE), Central Expressway (CTE) and Balestier Road.

It is also located along the Central Urban Loop (Whampoa Park Connector), an islandwide network connecting parks and nature sites.

"Balestier is currently undergoing successful rejuvenation with the opening of Zhongshan Mall, Ibis Singapore Novena and Health City Novena," Ian Loh, executive director and head of investment and capital markets for Knight Frank Singapore. "The reserve price for Summer Green is comparable to recent transactions of Kemaman Point at S$1,173 psf ppr (S$143.88 million), and Ampas Apartment at S$1,122 psf ppr (S$95 million)."

Earlier this month, Knight Frank also launched Chancery Esquire for collective sale. Owners at the 31-unit, 29,022 sq ft development along Chancery Lane are expecting offers above their reserve price of S$86.6 million.

This translates to a land rate of approximately $1,797 psf ppr with no development charge payable, subject to URA's development baseline search. Owners could receive between S$1.94 million and S$3.76 million in proceeds.

Based on the existing gross floor area (GFA) of 48,188.6 sq ft and assuming an average size of 753 sq ft, the site could potentially yield 63 new residential units.

Schools such as Anglo-Chinese School (Primary), Anglo-Chinese School (Barker Road) and Singapore Chinese Girls' Primary and Secondary Schools are located within a kilometre from the condo. A pre-application feasibility study (PAFS) will not be required for either site. The tender for Chancery Esquire will close on Aug 2 at 3 pm; and for Summer Green, on Aug 20 at 3 pm.

Mr Loh said that developments with 100 units or fewer are easier to sell and therefore face less risk of incurring remissible additional buyer's stamp duty (ABSD) for not completing the residential project and selling its units within five years of acquisition.

That now stands at 25 per cent, up from the previous 15 per cent, after recent cooling measures that came into effect on July 6.

Mr Loh said that in this new climate, developers will also be considering factors such as upcoming supply in the area and their ability to create a unique product.

Executive director of ZACD Group Nicholas Mak said such smaller sites are indeed less risky and less capital-intensive, but they may also lack economies of scale and are less likely to garner the interest of large developers with deep pockets.

"Well-located sites that are competitively priced - taking into consideration new market realities -should still garner some interest," said Tang Wei Leng, managing director of Colliers International. "Ultimately, whether a developer acquires a small or large site is also dependent on other factors including its development pipeline, growth strategy and financial capabilities."