Residential site at 26–38D Hillview Terrace launched for sale by tender at $255.4 mil
/ EdgeProp Singapore |
23 factory units at Hillview Terrace, which are zoned for residential use under the 2019 Master Plan, have been jointly put up for sale by tender (Photo: Colliers)
SINGAPORE (EDGEPROP) - Owners of 23 factory units, located at 26–38D Hillview Terrace, have come together to put their properties up for joint sale by tender with a reserve price of $255.4 million.
Colliers has been appointed the exclusive marketing agent for the deal.
The 999-year leasehold factories offer a combined site area of 11,131sq m (119,813 sq ft), which can be amalgamated with its adjoining access road and electrical sub-station to form a larger site area of 14,636 sq m (157,540 sq ft) for redevelopment.
The site, zoned for residential use under the 2019 Master Plan, has an allowable gross plot ratio (GPR) of 1.62. Additionally, the Urban Redevelopment Authority (URA) has granted a one-off, time-limited bonus residential GPR of 0.3, thus raising the allowable GPR from 1.62 to 1.92.
Including the bonus GPR, the maximum allowable gross floor area (GFA) of the site is approximately 302,478 sq ft, allowing the site to yield up to approximately 330 units, subject to approval from the authorities. To enjoy the bonus GPR, the land must be redeveloped in accordance with the parcellation plan prescribed by the URA.
Based on the reserve price of $255.4 million, this translates into a land rate of $1,336 psf per plot ratio (psf ppr), which is inclusive of an estimated development charge of $116.8 million and an estimated alienation cost of $31.9 million for the road and the sub-station.
Factoring in an additional 7% of bonus GFA for the balcony incentive scheme, the land rate will be lowered to $1,289 psf ppr.
A search on property intelligence tool LandLens shows that the most recent sales transaction in the immediate vicinity was in March 2019, when a unit at Hillview Terrace sold for $961 psf.
LandLens screenshot showing recent sales transactions for Hillview Terrace (Source: LandLens)
John Bin, director, capital markets & investments services, Singapore at Colliers, says that the site at 26–38D is ideal for residential development given its north-south orientation with views of the Bukit Gombak Hill, Bukit Batok Town Park and Little Guilin to the north.
He also notes that the site offers a rare opportunity for developers to own 999-year leasehold land in an attractive residential location. “With the favourable news of the bonus plot ratio incentive and possibilities of a regular parcellation, developers will enjoy more flexibility in designing their vision and concept for the site,” he adds.
The site is located in the Hillview estate and is accessible by major roads including Upper Bukit Timah Road, Pan Island Expressway, Bukit Timah Expressway and Kranji Expressway. Nearby MRT stations are Hillview, Bukit Batok, and Bukit Gombak, as well as the upcoming Hume Station on the Downtown Line, scheduled to open by 2025.
Numerous primary schools are also located within 2km of the site, including Bukit View Primary School, Keming Primary School, Princess Elizabeth Primary School and St Anthony’s Primary School.
Residential properties within a 1km vicinity of the site have transacted at prices between $802 psf to $1,481 psf since the start of the year.
LandLens screenshot showing recent sales transactions for private properties within a 1km radius of the Hillview Terrace site (Source: LandLens)
Toh Khai Yeow, chairman of the joint sale committee for 26–38D Hillview Terrace, notes that the bonus plot ratio granted by the URA has helped unified the owners of the 23 factory units in making the decision to collectively put up their properties for sale.
Last October, a smaller group of owners - making up 14 factory sites located at 32–38D Hillview Terrace — had jointly put up their properties for sale by tender at a price of $106 million. The tender was subsequently withdrawn in January.
Colliers points out that the successful buyer of 26–38D Hillview Terrace can also consider purchasing the adjoining parcel to the south, comprising 31–35 and 50–64 Hillview Terrace as well as Hillview Building and Hillview Warehouse, to develop into a single enlarged residential development.
The owners of 31–35 and 50–64 Hillview Terrace — comprising 11 freehold factory units with a combined site are 62,213 sq ft — had jointly put up their properties for sale for $122 million last November, before the tender was also subsequently withdrawn in January.
The public tender for 26–38D Hillview Terrace will close on April 12 at 3pm.
Check out the latest listings near Hillview Terrace, Hillview MRT station, Bukit Batok MRT station, Bukit Gombak MRT station, Bukit View Primary School, Keming Primary School, Princess Elizabeth Primary School, St Anthony’s Primary School
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