Albracca condo at East Coast sold for S$69.1m.
The latest to join a recent spate of successful collective sales is The Albracca, a 10-storey residential development along Meyer Road at East Coast. It was sold on Thursday to Sustained Land for S$69.1 million.
This works out to S$1,409 per square foot per plot ratio (psf ppr), inclusive of development charges of S$115,000 for intensifying the gross plot ratio to 2.1 from 2.09.
This is the first time that the 11-unit strata-titled development was offered for sale collectively. The owners' guide price during the tender was S$62 million to S$65 million.
When contacted, director of Sustained Land, Douglas Ong, said that his company plans to develop a 65-unit apartment on the site.
This is also the maximum number of units, assuming an average size of 70 square metres each, allowed under the 2014 Master Plan. Mr Ong added that while this is not a big project, it will give his company "something to do".
The developer's other ongoing projects include Sturdee Residences near Farrer Park MRT, TRE Residences in Geylang (jointly with MCC Land), Poiz Residences at Potong Pasir, and a building at 3 Cuscaden Walk.
Mr Ong said he was drawn to the site because of its location near an upcoming station called Katong Park station, which is part of the Thomson-East Coast Line slated to be ready in 2023.
The development will be sea-fronting with unblocked views across Katong Park and the sea, he added. He hopes to launch the units of the completed development at S$2,300 to S$2,500 psf.
The launch of this tender exercise came shortly after four collective sales were successfully concluded in May 2017 for about S$1.5 billion, surpassing the total number of en bloc deals completed in 2016.
The Albracca's tender response was strong with over a dozen bids received from developers of all sizes - from large to boutique developers, contractors and a fund manager.
Clearly, there is an increasing convergence of views amongst developers that the down cycle, which lasted over four years, has turned a corner, and that it's time to be back. As for en bloc sellers, this also comes as a relief as many have been waiting for such an opportunity for years.
Adapted from: The Business Times, 21 July 2017