2 more candidates from the private property segment has joined in the en bloc race, if it could be called a race that is. The pace at which private establishments and land have been put up for sale this year has been nothing short of astounding.
Potential for redevelopment with 1.16 plot ratio at Upper Bukit Timah site
Perhaps the momentum has kept developers and investors coming back to the table for more. The latest offering in the menu is the Cashew Heights condominium in Upper Bukit Timah. It is a rather large site with 596 apartment units and 3 shops. The 953,000 sq ft site has already garnered 62% of the votes from the residents.
The prime location and size of this site will keep developers salivating. It is situated near Cashew MRT station, Bukit Panjang Primary School and Bukit Panjang Plaza and Junction 10 malls. The development has a 999-year lease and was built in 1990. What may attract developers to the site is the current 1.16 built-up plot ratio. The allowed plot ratio is 2.1 This means the site has immense potential for redevelopment. The only possible deterrence to this en bloc sale is competition from a neighbouring site under the Government Land Sales (GLS) programme.
Freehold site in Bukit Timah a first in the last decade
The other site in prime district 10 is where the Royalville condominium sits on Bukit Timah road. This collective sale has already been launched last week to the tune of $368 million. The 174,176 sq ft site has a plot ratio of 1.4 and can yield a potential 323 units. Currently, Royalville has 93 apartment units and 11 shops.
Once again, location is expected to lure. The site is close to the Sixth Avenue MRT station and is one the first freehold site of this size available for sale in the Bukit Timah area in the last decade. It also has the advantage of having a total quantum size that suits most developers.
2017 has been a year of high-priced land sales. The 16 deals closed this far have a transacted value of $5.8 million. Compare this to the $7.8 billion for 78 deals in 2006 and $11.5 billion for 88 deals in 2007. Land prices can only rise.