Farrer road property added to the list of prime district collective sales
More properties in the prime districts are putting themselves in the collective sale market. Are the developers truly biting or are they now waiting for good deals to come their way? Have all their land banks been fully replenished or are they still looking for opportunities to top up their tanks? Are there newcomers in the developer pool and could that be the reason for renewed interest?
Spanish Village was built in the 1980s and now at more than 30-years-old, the 331, 457 sq ft condominium may make way for more and newer units. The site is zoned for residential use with a gross plot ratio of 1.6.
At their asking price of $882 million, the land rate stands at $1,721 psf ppr. There is also a development charge of $30 million.
Spanish Village has family appeal and is primed for rental market
With the Empress market just a stone’s throw away, good schools in the vicinity, and its proximity to the Central Business District (CBD), the Spanish Village site will appeal to families and expatriates. Also in development nearby is the Holland Village precinct. The plan is to increase foot traffic in the area while keeping the ambiance of the area intact.
The price gap between land banks in top-tier prime districts and the lower end of the market are narrowing. Hence, some developers may be attracted to the lower price differential and pick up these prime district spots.
While the location is always a crucial deciding factor in Singapore’s real estate market, there are developers who prefer to go for lower-end, more manageable land plots and build mass-market homes instead. The audience pool for these homes may be less niche as they mostly cater to HDB upgraders.