SINGAPORE (EDGEPROP) -- A freehold residential site on Thomson Road in District 11 has been put up for sale by private treaty with an asking price of $18 million.

Read also: Freehold serviced apartment in Balestier for sale at $93 mil

The site has a land area of 7,300 sq ft and gross floor area (GFA) of 8,300 sq ft. It has seven apartments spread across a single four-storey building.

Delasa (formerly Showsuite Consultancy) has been appointed as the vendors’ property consultants.

The development was built by a family-owned company in the mid-1980s.

The site is zoned for residential use, according to the URA’s 2019 Master Plan.

With an allowable plot ratio of 2.8, the site has a potential GFA of 20,400 sq ft before balcony space.

“Upon redevelopment, the site may accommodate a maximum of 22 apartments with an average size of 85 sq m (914.93 sq ft). At the vendors’ asking price which reflects $892 psf per plot ratio, a developer could reasonably expect to breakeven at around $1,800–$1,900 psf,” says Karamjit Singh, CEO of Delasa.

The site is located some 300m from United Square Shopping Mall and within walking distance to Novena MRT Station on the North-South Line.

“With its central location and easy access to MRT and shopping, the subject property could also be well-suited for co-living operations, students’ accommodation or serviced apartments. Last year, the vendors were granted an Outline approval to redevelop the site into serviced apartments,” continues Singh.

“Of late, we have been seeing a rise in families seeking to rationalise their real estate portfolios as they plan for their next generation on the back of rising real estate values. At the same time, there are also more family offices being established with legacy planning in mind. The buyer for this property could well be a local family of such nature, seeking steady rental income whilst enjoying naming rights to the building and future redevelopment potentials,” he adds.

Check out the latest listings near Thomson Road, Novena MRT Station