Collective sale of Tanjong Katong development relaunched at $63 mil
The owners of a 26-unit walk-up development at 52 to 62H Tanjong Katong Road in Singapore have once again put the property up for tender, this time at a guide price of $63 million.
Huttons Asia, the sole marketing agency for the site, said that when it was first launched for collective sale at an indicative price of $65.5 million in July last year, it received several offers below the asking price.
The land area of the site is an estimated 32,397 ft. The 2019 Master Plan permits it to have a gross plot ratio of 1.4, potentially yielding 45,356 ft of gross floor area. This could mean around 49 residential apartments with an average size of 915 sq ft.
Taking into account factors like estimated land betterment charge, the guide price translates to a land rate of $1,401 psf per plot ratio (psf ppr). After factoring in a 7% bonus balcony gross floor area, this could be lowered to $1,375 psf ppr.
Terence Lian, head of investment sales at Huttons Asia, remarked that the location of Tanjong Katong Road has been a choice for buyers looking for a new home in District 15. He believes this collective sale could garner considerable interest from developers, pointing to the success of Tembusu Grand, the 638-unit condo by City Developments and MCL Land just off Tanjong Katong Road.
This site is only a 10-minute drive away from the CBD and a 500m walk from Paya Lebar MRT Station. Shopping malls such as PLQ mall, i12 and Parkway Parade can be found nearby, alongside Singapore Sports Hub, East Coast Park and F&B offerings in the Katong and Joo Chiat areas. Deputy head of investment sales at Huttons Asia, Angela Lim, believes this is suitable for professionals and young couples looking for abundant convenience.
The tender for the property closes on May 9 at 2pm.
With its proximity to the CBD and Paya Lebar MRT Station, a range of amenities and a guide price of $1,401 psf ppr, the 26-unit walk-up development at 52 to 62H Tanjong Katong Road could be a great investment opportunity for developers. Upon completion, this could provide future residents with convenience and plenty of recreational facilities and F&B options. The site was previously up for collective sale at an indicative price of $65.5 million, but several offers were below the asking price.
Huttons Asia have relaunched the property for tender at a much lower rate of $1,375 psf ppr, factoring in the 7% bonus balcony gross floor area. The tender closes on May 9 at 2pm, and Terence Lian is optimistic that the collective sale will draw in keen interest from developers, citing the strong sales at Tembusu Grand as a good indicator.