With 7 collective sale transactions closed in 8 months, will yet another in Hougang make it 8? Florence Regency, the former Housing and Urban Development Company (HUDC) is putting themselves on the market for $600 million.
The Hougang Avenue 2 site boasts an excellent location near Kovan and Hougang MRT stations. The latter will eventually be an interchange station under LTA’s plans for the Cross Island Line. It is also near the Hougang Central Bus Interchange and Hougang Mall. Other pluses include its proximity to schools such as the Holy Innocents’ Primary School and French School of Singapore.
The owners of Florence Regency are optimistic about receiving offers between $615 million and $650 million. The 389,923 sq ft site has 71 years left on its lease and can yield between 1,100 to 1,300 apartments according to its sole marketing agent, JLL.
The minimum bid price is set at $600 million. Taking the $249 million estimated differential premiums into consideration, land costs comes up to be $779 psf ppr. This is comparable to the $861 psf ppt and $965 psf ppr in the 2 most recent land sales in Serangoon.
More to join ranks in Collective Sale market
The land sales market has seen quite a lot of action lately, and this seems likely to continue well into the year. The latest successful transactions include Serangon Ville and a Government Land Sales (GLS) site in Serangoon North.