En bloc beneficiaries stir resale market in prime districts

By EdgeProp Singapore | February 25, 2019 9:00 AM SGT
From caveats lodged, the last unit sold at The Grange on Grange Garden was in December 2017, when a 2,282 sq ft, four-bedroom unit on the 16th floor fetched $5.98 million ($2,621 psf). However, Jason Tan, executive director of JTResi, recently brokered the sale of a 1,765 sq ft, three-bedroom unit on the 19th floor of the 23-storey tower for $4.55 million ($2,578 psf).
The Grange is a 95-unit condo development that was completed in 2008 (Credit: The Edge Singapore)
The price of $2,578 psf is the highest achieved for a three-bedroom unit at The Grange since the last peak of the property market in mid-2007, when such units were changing hands in subsales at prices between $2,600 and $2,750 psf, according to caveats lodged then.
The buyer is said to be an Indonesian Chinese turned Singapore citizen who purchased the unit for his own use. He was looking for a replacement home as he has benefitted from the successful completion of the en bloc sale of Tulip Garden, a 162-unit residential development, for $906.9 million. Each unit owner received their payout of $4.3 million to $7.6 million apiece just a few days before Chinese New Year.
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The three-bedroom unit at The Grange was well-maintained, although still in its “original condition”, says Tan. The Grange is a 95-unit development with twin 23-storey blocks located on a 98,000 sq ft, freehold site. Developed by MCL Land, the project was completed in 2008.
A three-bedroom unit at The Grange has recently been sold for $4.55 million ($2,578 psf) (Credit: JTResi)
Despite its age, The Grange is very well-maintained, Tan adds. Located just off Grange Road, the condo is within a short distance from the upcoming Orchard Boulevard MRT Station on the Thomson-East Coast line. Neighbouring developments include Orchard Bel-Air on Orchard Boulevard and Parkview Eclat on Grange Road. Across the road are the Good Class Bungalows on Chatsworth Avenue and Rochalie Drive.
The Grange contains three- and four-bedroom units as well as penthouses. The three-bedroom units are sized from 1,743 sq ft to 2,076 sq ft; four-bedroom units are from 2,281 sq ft to 2,301 sq ft; while penthouses range from 4,379 sq ft to 4,433 sq ft.
“We’ve been getting quite a few enquiries from en bloc beneficiaries in the prime districts of 9 and 10 over the past fortnight,” says Tan. “Just the other day, we received a call from someone whose property at Cairnhill Mansions was sold en bloc last year.”
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At Botanic on Lloyd, a 2,056 sq ft, four-bedroom unit on the second floor changed hands for $4.4 million ($2,140 psf). The caveat was lodged in December. However, the sale is due to complete on Feb 22. The buyer is said to be a Korean American purchasing the unit for his own use. The sale was brokered by Tan.
At $2,140 psf, the price is the highest in psf terms since 2011, when a 1,841 sq ft, three-bedroom unit on the third level was sold for $4.14 million ($2,250 psf).
The Botanic on Lloyd is a 13-year-old, freehold boutique development with just 66 units. It was developed by CapitaLand and completed in 2006. The unit that changed hands recently there was also in its original condition.
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“These slightly older properties are seen by buyers to offer better value compared to movein-ready units in new developments,” says Tan. “They are also perceived to offer greater upside potential over the long term.”
Tan had put up for sale a unit at Belle Vue Residences at Oxley Walk at the end of last year. It is a 2,164 sq ft, four-bedroom unit with a price tag of $5.78 million. The 176-unit, freehold development by Wing Tai Holdings was completed in 2010 and designed by renowned Japanese architect Toyo Ito.
“I’ve been getting enquiries every other day, but the unit has been tenanted at $10,000 a month since last October,” he says. “Some of these en bloc beneficiaries want to be able to move in immediately.”