Spanish Village in Farrer Road asking for $882m
Yet another property development has been put up for sale.
Owners of the 226-unit freehold property along Farrer Road known as Spanish Village are asking for $882 million.
There are at least 10 other launched redevelopment sites in the prime districts waiting for buyers.
Edmund Tie & Company, the marketing agent for Spanish Village, said the asking price for the freehold residential site reflects a land rate of $1,721 psf ppr, inclusive of a development charge of about $30 million.
Built in the 1980s and spanning 331,457 sq ft, the site is zoned for residential use with a gross plot ratio of 1.6.
"With all the surrounding good schools and proximity to lifestyle options and CBD, the location holds great appeal for families with school-going children and expatriates alike," said Edmund Tie & Company's senior director of investment advisory Tan Chun Ming. "URA's recent tender award of the Holland Village GLS (government land sale) site for a mixed-use and pedestrian-oriented development will also add to the vibrancy of the locale."
JLL senior consultant Karamjit Singh noted that the collective sale upswing from 2016 to date has been led by the lower end of the private residential market, as strong demand for mass market homes and shortage of land kick-started the upswing.
As land prices rose for the lower end of the market, the upper tiers of the market are starting to look relatively underpriced.
This in turn spurred collective sales in the medium to upper-end segments.
But he pointed out that prime land does not interest all types of developers.
"Some would prefer mass market sites as they are good at building such homes.
"They also feel the size of demand for affordable homes is much wider as such projects mainly cater to HDB upgraders to whom additional buyer's stamp duty and total debt servicing ratio are lesser of an issue.
"On the other hand, developers who specialise in the luxury end would welcome opportunities to build what they are good at," Mr Singh said.
- THE STRAITS TIMES
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