Fragrant Gardens, a freehold, residential development off Upper Paya Lebar Road, has been launched for collective sale, announced marketing agent Knight Frank Singapore. The development, located in District 19, has a $65 million reserve price.

The 37-unit residential estate sits on a 38,576 sq ft site that is zoned for residential use under the 2014 Master Plan, with a gross plot ratio of 1.4. This translates into a land rate of about $1,204 psf per plot ratio (ppr). Including a 10% bonus balcony gross floor area, with a proposed plot ratio of 1.54, the land rate will be about $1,094 psf ppr. The residential estate is near landed housing enclaves and condominiums.

Fragrant Gardens is close to the 78-unit Sun Rosier, which was sold for $271 million ($1,325 psf ppr) last September, to a group comprising SingHaiyi Properties and Huajing International Corporation. Compared to Sun Rosier, the price for Fragrant Gardens is “very competitive”, says Ian Loh, head of investment and capital markets at Knight Frank Singapore.

Due to the high development baseline at Fragrant Gardens, no development charge is payable for the intensification of the site, and a Pre-Application Feasibility Study on traffic impact is also not required. Fragrant Gardens comprises two adjoining blocks of 37 units, ranging from 850 sq ft to 2,142 sq ft. The new development could reach a maximum permissible gross floor area of about 54,005 sq ft, or about 71 units of 70 sq m (753.5 sq ft).

“Despite recent government cooling measures, the price quantum of $65 million is a palatable, low-risk acquisition to mid-sized developers. Coupled with no possible risk of development charge movements, we believe the site could attract developers with lower risk appetites looking for redevelopment opportunities,” says Loh.

The tender will close on September 4.