Land Price.

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https://www.facebook.com/pages/Lake-...42175599336664

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Eng Cheong Tower site to be redeveloped

27 Aug 05

UOL and Low Keng Huat plan condo-SoHo project there


UNITED Overseas Land and Low Keng Huat are planning to redevelop their Eng Cheong Tower site into a project with a mix of condominium and small office, home office (SoHo) units.

The collective sale - the first for a 99-year leasehold property - was approved by the Strata Titles Board on Thursday.

'We're planning a chic, inner-city development that will capitalise on views of the river and have seamless underground access to Kallang Riverside Park,' said UOL group general manager Liam Wee Sin. 'The project will be substantially for sale.'

Eng Cheong Tower was sold through a tender exercise. The top bid of $47.5 million by UOL and Low Keng Huat works out to a land price of about $240 per square foot of potential gross floor area, inclusive of development charges (DC) and a premium to top up the site's lease to 99 years.

What facilitated the collective sale of the first 99-year leasehold property in Singapore was an unprecedented decision by the Singapore Land Authority to grant in-principle approval to top up the lease of the site from the remaining 65 years to the original 99 years.

In the past, SLA had processed requests for lease upgrading only on formal application, which requires more detailed submissions and takes a longer time.

The in-principle lease upgrade nod from SLA was for a residential development with retail and commercial use on the lower storeys, subject to conditions.

Prior to the launch of Eng Cheong Tower's tender, outline planning permission had also been obtained from the Urban Redevelopment Authority for a new 24-storey commercial and residential development with a 6.36 plot ratio (the ratio of allowed gross floor area to land area) to be built on the 40,377 sq ft site.

Assuming an all-in land cost of about $240 psf per plot ratio, market watchers estimate that the breakeven cost for a new condo/SoHo project on the site could come in below $500 psf for the UOL and Low Keng Huat tie-up.

The strategy adopted for the collective sale of Eng Cheong Tower is seen by property market watchers as setting a precedent for more such sales of strata titled properties with dwindling leases. This should facilitate redevelopment of ageing leasehold buildings and help fight urban blight.


By KALPANA RASHIWALA

http://www.skyscrapercity.com/showthread.php?t=358211

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S$ 456 psf per plot ratio

http://www.skyscrapercity.com/showthread.php?t=1387008

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