A 2,368 sq ft, three-bedroom unit at Spanish Village changed hands for $3.08 million ($1,301 psf) recently, according to a caveat lodged with URA Realis on Feb 13. This is the development’s first transaction in more than a year: the last transaction was in November 2017 when a 2,056 sq ft, three-bedroom unit on the second level fetched $2.55 million ($1,240 psf).
The 266-unit, freehold Spanish Village, which was built in 1987, was launched for collective sale on Feb 11 by marketing agency, Edmund Tie & Co (ET&Co). The guide price is $882 million, which reflects a land rate of $1,721 psf per plot ratio inclusive of a development charge of $30 million. Owners are in the process of signing a supplementary agreement to lower the reserve price of the development to $828 million. The tender will close on March 11.
The owner of the unit that changed hands recently did not wait for the outcome of the latest collective sale attempt – Spanish Village’s third. The first-level unit was purchased 17 years ago for $1.22 million ($515 psf), according to a caveat lodged in May 2002. Spanish Village fronts Farrer Road in prime District 10.
The $3.08 million transaction was the top gainer for the week of Feb 12 to Feb 19 (see Gains & Losses Table). However, it was said to be a distressed sale. Usually, when a development is attempting a collective sale, very few owners will want to sell their unit in the resale market, according to property consultants. This is because the collective sale price for their unit is generally at a premium to the prevailing market price.
Located nearby on Farrer Drive, just off Farrer Road, is Sommerville Park, where three units changed hands in February. The freehold, 456-unit, low-rise residential development was completed in 1985. The latest sale was for a 1,302 sq ft, three-bedroom unit on the 14th floor that fetched $2.18 million ($1,674 psf), according to a caveat lodged on Feb 13.
On the same day, a 1,948 sq ft, four-bedroom apartment on the sixth level went for $3.37 million ($1,730 psf). Meanwhile, a 1,862 sq ft, three-bedroom unit on the third level was sold for around $3.1 million ($1,664 psf) on Feb 11.
Most of these buyers are locals who prefer larger units, and are therefore snapping up these older, freehold developments. According to Dominic Lee, head of luxury team at PropNex Realty, buying activity in the Holland Road-Farrer Road area has picked up in recent months compared to other areas in prime District 10. These developments also hold longterm collective sale potential.
What’s more, future launches in the Farrer Road-Holland Road area – such as the former The Estoril, Hollandia as well as Tulip Garden located across the road – are expected to set new benchmark prices, notes Lee.