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Singapore Property News

Eunosville latest ex-HUDC estate to be put up for collective sale

OWNERS of 330-unit Eunosville have put up their former HUDC (Housing and Urban Development Company) estate for sale - the third residential development to be launched en bloc this year.

Posted on 13-Apr-2017

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Eunosville latest ex-HUDC estate to be put up for collective sale

OWNERS of 330-unit Eunosville have put up their former HUDC (Housing and Urban Development Company) estate for sale - the third residential development to be launched en bloc this year.

Based on its asking price of S$643 million-S$653 million, Eunosville stands to be the largest former HUDC estate to be collectively sold in a decade after Farrer Court was sold for a record S$1.34 billion in 2007 to CapitaLand.

As a sign of continued momentum in the en bloc market, the launch of Eunosville came on the heels of this week's launch of Rio Casa, another privatised HUDC estate in Hougang; and One Tree Hill Gardens, a prime freehold development in District 10, in January.

Eunosville consists of six maisonette blocks of 255 maisonettes and four walk-up apartment blocks with 75 apartments. It was built in the late 1980s with a balance lease of about 70 years.

The site is almost rectangular in shape with wide frontage onto Changi Road and Sims Avenue. It has a land area of about 34,997.8 sq m and a redevelopment could potentially yield about 1,035 units with an average size of 90 sq m.

A differential premium of about S$181 million is expected to be paid to the government for topping up the lease to a fresh 99-year lease and the intensification of the site to a gross plot ratio of 2.8.

Including the differential premium, the per square foot cost for the developer works out to be S$780 to S$790 per square foot per plot ratio (psf ppr), according to OrangeTee, the sole marketing agent for the tender. This translates to an estimated break-even pricing of S$1,250 psf.

"With the recent successful launches of the two nearby projects at Park Place Residences and Grandeur Park Residences, a developer can expect to fetch selling prices in the region of S$1,450 psf for a new condominium on site," said OrangeTee director of business solutions Alex Oh.

"We believe Eunosville will generate good interest from developers given its excellent connectivity being right next to the Eunos MRT Station and to major expressways. The site offers a developer an opportunity to acquire a site just one station from Paya Lebar Central which is set to become a vibrant commercial hub," Mr Oh added.

This marks the second collective sale attempt by the owners of Eunosville. The mandate from owners of more than 80 per cent of strata area and share value was achieved in less than four months. The tender for Eunosville closes on May 31 at 3pm.

Property consultants have said that the tight supply of private housing sites at state tenders and strong demand for land by developers bode well for en bloc sales this year.

The uptick in the collective sales market last year, with three residential sites Shunfu Ville, Raintree Gardens and Harbour View Gardens sold for S$638 million, S$334.2 million and S$33.25 million respectively, has led to increased optimism and interest among owners of potential collective sale sites.

Rio Casa, also a former HUDC estate, was on Monday put up for collective sale by its marketing agent Knight Frank Singapore. The owners of the river-fronting estate along Hougang Avenue 7 are expecting offers of more than S$450.8 million.

Knight Frank is also the marketing agent for One Tree Hill Gardens, which was launched for collective sale in January for at least S$72.8 million. It has not been sold yet but there are "serious discussions" underway, said Knight Frank head of investment and capital markets, Ian Loh.

Mr Loh noted that while there are more residential owners starting to look for en bloc potential, their properties are more likely to come to the market next year.

In the current known pipeline, the mandated 80 per cent consensus among owners is being sought at Dunearn Court in prime district 11, Amber Park in Katong, Cairnhill Mansion in District 9, Villa D'este in District 10 and Florence Regency (former HUDC at Hougang Avenue 2).

Meanwhile, there are also mixed-use and commercial sites up for collective sales.

A mixed-use development, Goh & Goh Building at Upper Bukit Timah Road, was launched by JLL this year with an asking price of at least S$120 million; a collective sale is still under negotiation. The landmark Katong Shopping Centre is also looking for buyers with a reserve price of S$630 million, after plans to develop the site into a mall with serviced apartments have been approved.

The Business Times

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