The 18-storey residential development, Cairnhill Mansions, situated at 69 Cairnhill Road in the prime District 9 of Singapore is the latest freehold development to be put up for en bloc sale in the property market – with an indicative price of S$362 million (or S$2,101 psf ppr).
At the same time, a single-level detached house at 67 Cairnhill Road – sitting on a freehold plot just next to the 61-unit Cairnhill Mansions have also been launched for collective sale – with a guide price of S$115 million (or $2,225 psf ppr).
The subject properties are both located near the Orchard Road shopping belt and also Newton MRT Interchange Station.
The acquisition of both freehold sites will offer a total land area of 62,903 square feet (sq ft) for redevelopment.
With a plot ratio of 2.8, the future new launch project could potentially be constructed up to 36 storeys tall and could yield approximately 308 apartment units in total – on the basis that both sites are redeveloped into one and an average unit size of 70 square metres (sq m).
Analysts have noted that the acquisition of both sites would be extremely attractive to property developers due to the overall quantum of less than S$500 million in the current property market.
On top of that, property buyers will also have the flexibility of choice to purchase either plot or 2 of them at one go.
Both sites’ tender will close 12 December 2017.
Since 2016 when en bloc sales boom began, only 2 out of the 20 en bloc deals – involving pure residential usage sites located in prime District 9 and District 10 have been transacted – namely Jervois Gardens and One Tree Hill Gardens.
It was also mentioned that the time will come when property developers have built up their land banks and they will ease the pace for collective sales and be more selective with the sites.
Developers will likely favor sites with lesser competition in terms of supply, thus the speed and timing for these sellers will be crucial.