East Court seeks S$19m in en bloc tender

Guide price works out to S$1,031 psf ppr including development charges

TUE, SEP 11, 2018


EAST Court is the latest development here to go en bloc.

The eight-unit, 13,351 sq ft development in Koon Seng Road, near Dunman Road, was put on the market for S$19 million on Monday.

Owners could stand to get S$2.375 million a unit, should the sale go through at that price.

The freehold development has achieved 100 per cent consensus from its owners, which means there will be no need for Strata Titles Board approval, said marketing agent Orangetee & Tie in a statement.

The guide price of S$19 million translates to S$1,031 per square foot per plot ratio (psf ppr) including development charges and based on the residential site's 1.4 gross plot ratio. The buyer can choose to take advantage of the 10 per cent balcony bonus.

Schools like Haig Girls' School, Tanjong Katong Primary School and CHIJ (Katong) Primary are in the area.

Jane Tan, associate deputy group director for OrangeTee & Tie , said the small sales quantum of the site makes it easy for the developer to sell all the units. The site can be redeveloped into 17 units, she said.

The tender closes on Oct 26.

As of Sept 9, 47 collective sales have closed without a buyer, 19 of them with closing dates after new cooling measures came into place, according to Colliers International data.

Nicholas Mak, executive director of ZACD Group, said: "The market definitely has cooled down a lot, but we can't discount the possibility of some deals happening - these will tend to be smaller sites as they are more digestible for the developer."

Developers may also be watching to see the sales takeup rate at new launches post-cooling measures, which may influence their appetite for land, he said.

Alan Cheong, senior director for research at Savills Singapore, said: "For smaller sites... it is still possible to get a collective sale through, provided the sellers are realistic in their pricing, making the necessary downward adjustment to take into account the risks developers face under the new cooling measures."