Between $2.78 million to $11.5 million. That’s how much owners of the 77 units at City Towers will receive after their development sold for $401.9 million last week.
$401.9 million price tag 13% higher than reserve price
The $410.9 million sale price, 13% more than what the owners were asking for, is a sign that the flow of en bloc success stories have not yet waned. Developers are keen on prime lots and are willing to pay. Analysts have termed the bidding for this plot “aggressive”.
The 17-story freehold district 10 City Towers currently consists of apartments, maisonettes, a penthouse and a shop unit. The land rate of $1,840 psf ppr is higher than that of the neighbouring Crystal Tower which also sold en bloc last November.
The site has a land area of 104,531 sq ft and a proposed total floor area of 219,516 sq ft. It has a plot ratio of 2.1 and can be developed into a 24-storey residential project with 190 new units with an average size of 1,098 sq ft.
Location a good hedge for future market competition
The depth of recovery for the property market in district 10 is considerable. It is just on the way up. While the winning bidder has yet to be announced, they will no doubt be able to take advantage of future opportunities in this residential market.
Analysts consider a $3 million average selling price affordable in the prime District 10. And with the high-end residential market picking up, developers can easily adjust their unit-size to fit the budgets of potential buyers. Timing and opportunity are key in determining investment success.