One of the first condominiums to try their hand at the en bloc process after the latest round of property cooling measures is one on Oxford road.
Kentish Green condominium near Farrer Park MRT station
Kentish Green is a 122-unit condominium near Farrer Park MRT station and the owners are setting the reserve price at $230 million.
Besides being near a MRT station, the site has a few other plus points:
- It is a mixed-use site with the potential of having a commercial component to the new development aside from yielding more than twice its current 122 units. The site can be redeveloped to accommodate 219 to 259 apartments.
- It is near education institutions such as St Joseph’s Institution Junior and Farrer Park Primary School.
- The upcoming Russian Cultural Centre will be built in the vicinity, on Rangoon Road. That could potentially boost home rental and other retail activities.
- The Pek Kio market is also not far away. The area has many other up-and-coming eateries offering up a variety of cuisines.
- The sites is situated between the Novena health hub and the Farrer Park Hospital, offering sufficient options for healthcare.
The area has a number of smaller developments which may also be future fodder for redevelopment. But currently, new condominiums in the area are few and far in between.
$20 million premium to top up a fresh lease
There may, however, be some drawbacks for developers. As the condominium only has 76 years left of its 99-year lease, the buyer will have to add $20 million to top up the lease to a fresh 99-year term. There be also be a land intensification charge. These charges may push the final quantum quite high and it may be eventually transferred to the selling prices of units in the new development.
There will be a new minimum height for the new development, and this new height control could entice developers. The height control will be raised from the current 6 storeys to an eventual 28 storeys subject to a formal development application.