Being spurred by the revival in the collective sale market this year, a former HUDC at Serangoon North Avenue 1 – Serangoon Ville has been put up for collective sale, with an expected sale price of between $400 million – $430 million by the owners.
Comprises of 244 units in total, Serangoon Ville spans across a massive land area of around 296,913 square feet (sq ft) and has a 2.8 plot ratio.
Each owner will be expected to receive proceeds between $1.6 to $1.7 million from the en bloc sale.
The incoming property developer is forecasted to cough out an estimated amount of between $200 million to $220 million for the redevelopment works and topping up the current lease (with 69 years remaining) to a fresh 99-year tenure.
According to property analysts, the overall land cost would work out to be in the range of $720 to $750 psf ppr and the average breakeven price for the future new launch condo project will be approximate $1,100 psf.
This Serangoon Ville site will be expected to draw keen interest from developers due to its favorable location – being close to various facilities and amenities such as Chomp Chomp Food Centre, the NEX Shopping Mall, banks and wet markets etc.
The latest new launches in the same district are namely Forest Woods and Stars of Kovan – which both have been very well-received.
On top of Serangoon Ville, there’s in fact a plot of land for sale (under the 1H 2017 Government Land Sales Programme) along Serangoon North Avenue 1 as well, which analysts are expected bid prices to go as high as $439 million or $950 psf ppr – which clearly makes Serangoon Ville a slightly better choice for acquisition.
So far in 2017, a total of 4 en bloc sales have been concluded, which sums up to a total of more than $1.5 billion – surpassing the $1 billion from 3 en bloc sales in 2016.
Market watchers are expecting the en bloc market to remain buoyant for a little while more, with an estimated 30 to 40 properties forming the Collective Sale Committee (or CSC) or initiated a collective sale process.