En bloc deals spur buying interest in Holland Road-Farrer Road area

/ EdgeProp
March 12, 2018 7:30 AM SGT
Interest in condominiums in the Farrer Road-Holland Road enclave could have been prompted by the spate of collective sales in the first three months of this year.
In January, the 20-unit The Wilshire on Farrer Road was sold for $98.8 million ($1,536 psf per plot ratio) to Roxy-Pacific Holdings and a private investment vehicle of the Tong Eng Group’s Teo family at the close of its tender. Early this month, Far East Consortium International snapped up the 48-unit Hollandia on Holland Road for $183.4 million ($1,703 psf ppr). Both deals were brokered by Savills Singapore.
At Gallop Gables, a 3,401 sq ft, five-bedroom unit on the first level fetched $5 million ($1,470 psf) in February, according to a caveat lodged with URA Realis. The freehold, 140-unit project was developed by Straits Trading Co and completed in 1997.
High-angle shot of Gallop Gables at Farrer Road
At Gallop Gables, a 3,401 sq ft, five-bedroom unit on the first level fetched $5 million ($1,470 psf) in February, according to a caveat lodged with URA Realis (Credit: The Edge Singapore)
Some buyers could be buying in anticipation of a collective sale in the future. “Even before the start of the collective sale fever, I have seen more interest in older properties in this neighbourhood, predominantly from Singaporean families with a budget of $3 million to $5.5 million,” says Raj Bhandari, senior group director at Real Centre International. “They are looking for properties that have intrinsic value and the potential for capital growth to preserve their wealth.”
Bhandari is marketing a 3,165 sq ft, four-bedroom-plus-study unit at Gallop Gables, which is going for around $1,788 psf, the asking price for another unit at the development that is on the market.
In the vicinity of Gallop Gables, other freehold developments, such as the 226-unit Spanish Village, the 44-unit Sutton Place and the 453-unit Sommerville Park, are at various stages of the collective sale process, says Suzie Mok, senior director of investment sales at Savills Singapore.
Across Farrer Road is the 162-unit Tulip Garden, which was launched for sale by tender on Feb 27. The price tag of the 316,708 sq ft, freehold site is $753 million ($1,399 psf ppr). Based on a plot ratio of 1.6 and maximum height of 12 storeys, the new development could have 670 units, assuming an average size of 790 sq ft. This marks Tulip Garden’s fourth collective sale attempt.
On either side of Hollandia are the 44-unit The Estoril and the 11-unit, freehold Holland Hill Lodge. The Estoril, which sits on an 84,600 sq ft freehold site, was launched for sale on Feb 26, with a guide price of $220 million ($1,478 psf ppr). The site could be redeveloped into a new 166-unit condo, according to marketing agent CBRE. “This marks The Estoril’s fourth collective sale attempt,” says Sammi Lim, CBRE director of capital markets. “The last attempt was in 2010.”
While the Holland Road-Farrer Road enclave appears to be underpriced relative to other prime neighbourhoods in prime District 10, CBRE’s Lim sees potential for future price growth.
Developers’ interest in the Holland Road-Farrer Road neighbourhood has also been ignited by the URA’s launch of the commercial and residential site on Holland Road last November. It involves a dual-envelope concept and price tender, which closes on March 20. The site is located near the Holland Village MRT station and has a maximum gross floor area of 642,772 sq ft, of which 145,314 sq ft has to be for retail use. URA has capped the number of residential units at 570.
“It looks like the collective sale fever has spilled over to the Holland Road-Farrer Road area,” says Savills’ Mok. “The en bloc sale process had begun even before URA launched the GLS site on Holland Road.”
This article appeared in EdgeProp Pullout, Issue 821 (March 12, 2018).