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Royalville in Bukit Timah priced at S$368m in collective sale

13 Oct, 2017

Royalville, a prime freehold residential site in Bukit Timah Road, has been launched for a collective sale by owners asking for S$368 million.

This reflects a land rate of S$1,509 per square foot per plot ratio (psf ppr), with no development charge payable.

Including the 10 per cent bonus balcony gross floor area that could incur an estimated development charge of S$1.16 million, the land rate may be lower at S$1,376 psf ppr.

The tender, which will close on Nov 10, joins a spate of sites that have been launched for collective sale this year. Already, 16 collective sales year-to-date have clocked over S$5.84 billion in gross proceeds.

Another project that will be launched in about two weeks' time in the Bukit Timah area is Mayfair Gardens, which has crossed the 80 per cent backing from owners for a collective sale.

Consultants note that there has not been any freehold site of Royalville’s size available for sale at Bukit Timah in the last 10 years.

Keen interest for Royalville is expected given its strong location and site attributes including the coveted freehold tenure, highly desirable Bukit Timah Road address, proximity to the MRT and its large grounds which allow the developer to design an upscale condominium of up to 323 residential units with comprehensive suite of facilities.

Observers note that the estimated land rate of S$1,376 psf ppr for Royalville may translate to a breakeven price of S$1,950-2,100 psf and selling price in the range of S$2,150-2,500 psf.

Transactions of apartments in nearby projects The Asana, Leedon Residence and Cluny Park Residence have largely been in the range of S$2,000-S$2,400 psf over the past one year, based on caveats lodged.

Quantum-wise, the price is one that many developers can afford. Because it's a medium-size project, developers do not have to worry about the five-year deadline to sell out a project to qualify for remission of additional buyer's stamp duty on land cost.

Built in the 1980s, Royalville comprises 93 residential units and 11 shop units. The District 10 property, which sits on a land parcel of 16,181.5 sq m, is zoned residential with a gross plot ratio of 1.4 under Master Plan 2014.

It is within 260 metres of Sixth Avenue MRT Station, and enjoys proximity to a wide array of amenities and distinguished schools including Raffles Girls' Primary School, Methodist Girls' School (Primary), Nanyang Primary School, Hwa Chong Institution and National Junior College.

Further west in Toh Tuck Road, owners of freehold condominium project Goodluck Garden have appointed their marketing agent, and over 60 per cent of owners by share value and strata area have voted in favour of the collective sale agreement so far.

Over in the Cashew Road/Bukit Panjang area, owners of Cashew Heights have just hopped onto the enbloc sale bandwagon. They held their first extraordinary general meeting on Oct 7 during which owners controlling 62.25 per cent of share values and strata area voted in favour of starting the en bloc sale process by electing the collective sale committee.

The 999-year leasehold estate has a land area of about 953,000 sq ft. It is zoned for residential use with 2.1 plot ratio under Master Plan 2014. The estate comprises 596 apartments and three shop lots in 12 blocks.

David Wong, vice-chairman of the sales committee, declined to disclose the asking price for the property until after the appointments of marketing agents and lawyers. "But we are going to exceed the price for Farrer Court," he added.

Farrer Court was sold in 2007 for S$1.34 billion in 2007, with a further combined estimated sum of S$470 million payable by the developer to the state in differential premiums for intensifying the site and lease top-up.

"In terms of both land area and value, we are the biggest 999-year/ freehold residential property near an MRT station going for an en bloc sale, at this juncture," said Mr Wong.

Adapted from: The Business Times, 13 October 2017