Wednesday, June 9, 2010

Two residential sites put up for en bloc sale

Knight Frank also unveiled the tender for Cavenagh Mansions, a freehold residential redevelopment site along Cavenagh Road, with a guide price of $55 million to $60 million.

This translates to a land price of $1,258 to $1,367 per square foot per plot ratio.

Analysts said the asking prices for the properties appear to be high.

But they do not think that the simultaneous launch of the two properties marks a return of the en bloc fever.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the property market is entering an “uncertain phase” due to the crisis in the euro zone. And property owners may be anxious to sell as “they want to use the present opportunity to sell before any more uncertainty materialises”, he said.

The marketing agents for both sites said they are confident that the properties will get good response from buyers.

Mr Karamjit Singh, managing director at Credo Real Estate (Singapore), said medium to large-sized developers will be keen on the freehold Goodrich Park, which can be made into 120 apartment units.

Goodrich Park currently has 52 units on a land area of close to 97,703 sq ft.

Mr Nicholas Wong, executive director for Investment at Knight Frank, believes that boutique property developers and foreign developers will be interested in Cavenagh Mansions since the site is relatively small.

Mr Colin Tan, Chesterton Suntec International’s research and consultancy director, said the site has a good location but the drawback is its small size. “The eventual development needs to be niche or else it will be difficult to get buyers,” he said.

Both tenders will close on July 8.

Source : Today – 9 Jun 2010

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