High Point collective sale tender to close on July 28
Savills says the site could be redeveloped into a 36-storey ultra-luxurious high rise of 98 units, supposing an average dimension of 2,153 sq ft per unit. Property developers can also decide on to develop even bigger units to deal with new demand from ultra-high-net-worth foreign buyers. Mentioning deluxe condominium Park Nova as an instance, Savills notes that 37 out of the 54 units readily available at Park Nova have been offered given that its release last June at an ordinary rate of $4,815 psf.
The 22-storey High Point was finalized in 1973 as well as sits on a 47,606 sq ft property location. It has an existing overall gross floor area (GFA) of approximately 211,976 sq ft, or a plot ratio of 4.45. Under the URA Master Plan 2019, the location has an allowed gross plot ratio of 2.8 and also level control of as much as 36 storeys. The URA development baseline is around 213,383 sq ft with a plot ratio of 4.48. A pre-application workability research study is also not required by LTA for the area redevelopment for as much as 196 units.
The overview cost of $550 million for the area calculates to $2,508 psf per plot ratio once factoring in the 7% incentive GFA for porches. The property development fee payable for the 7% perk GFA has to do with $18.8 million.
No closing date was set at the time of the release tender in March. Jeremy Lake, Savills’ handling director for financial investment sales and also capital markets, was then quoted as claiming that a closing day would be decided on when validated interest had actually been received from a minimum of one developer.
The public tender for High Point, a 59-unit apartment block at 30 Mount Elizabeth, will close on July 28, according to sales broker Savills. The residential property was relaunched for collective sale on March 21 with an overview fee of $550 million, adhering to a previous pursuit last year that saw Hong Kong-listed Shun Tak Holdings terminate its purchase of the building.
Lake thinks that supply of modern ultra-luxurious condominiums will keep “very constrained”, given that the most recent cooling measures might make it tougher to acquire the 80% consensus needed to proceed with a cumulative purchase, particularly for growths in the core central region (CCR) where foreign property is higher. This is since foreign owners are going to need to pay a greater ABSD (Additional Buyer’s Stamp Duty) when they buy a substitute building “and also therefore may be much less keen to join in the cumulative sale,” he adds in.
Lake now says that the July 28 closing date has actually been set up adhering to rate of interest registered by developers. “After opening the general public tender in March we have actually been in constant contact with designers and the rate of interest degree in outstanding prime housing locations has actually grabbed,” he adds. He adds that foreign developers have likewise been able to visit Singapore since traveling restrictions have been eased.