High Point collective sale tender to close on July 28

The 22-storey High Point was completed in 1973 and sits on a 47,606 sq ft housing site. It has an existing complete gross floor location (GFA) of around 211,976 sq ft, or a plot ratio of 4.45. Under the URA Master Plan 2019, the area has an allowable gross plot ratio of 2.8 and also level control of approximately 36 floors. The URA development baseline is about 213,383 sq ft with a plot ratio of 4.48. A pre-application feasibility research study is also not needed by LTA for the area redevelopment for up to 196 units.

No closing day was set at the time of the open tender in March. Jeremy Lake, Savills’ operating supervisor for investment sales and resources markets, was then priced estimate as saying that a closing date will be picked once confirmed rate of interest had been obtained from a minimum of one developer.

Savills claims the location can be redeveloped right into a 36-storey ultra-luxurious tower of 98 units, presuming a typical size of 2,153 sq ft each. Developers can likewise decide on to construct also bigger units to cater to new demand from ultra-high-net-worth foreign buyers. Pointing out deluxe condo Park Nova as an instance, Savills notes that 37 out of the 54 units available at Park Nova have been marketed because its release last June at an average rate of $4,815 psf.

The public tender for High Point, a 59-unit apartment block at 30 Mount Elizabeth, will close on July 28, according to advertising agent Savills. The building was relaunched for collective sale on March 21 with a guide rate of $550 million, adhering to a former effort final year that saw Hong Kong-listed Shun Tak Holdings abort its investment of the residential property.

The guide cost of $550 million for the area works out to $2,508 psf per plot ratio after considering the 7% reward GFA for balconies. The development cost payable for the 7% reward GFA has to do with $18.8 million.

Lake believes that supply of new ultra-luxurious residences will stay “extremely constrained”, considered that the most up to date cooling measures may make it more difficult to secure the 80% consensus required to proceed with a cumulative deal, especially for developments in the core central region (CCR) where foreign ownership is higher. This is since foreign homeowners will have to pay a more costly ABSD (Additional Buyer’s Stamp Duty) when they purchase a substitute building “and consequently may be less keen to join in the collective sale,” he adds.

Lake currently says that the July 28 closing day has actually been set adhering to rate of interest registered by developers. “After opening the public tender in March we have actually remained in constant contact with developers and also the rate of interest level in incredibly prime household areas has grabbed,” he includes. He adds that international developers have likewise been able to go to Singapore because travel constraints have been relieved.

Leedon Green MCL Land and Yanlord Land Group

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