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.
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.