St Michael’s Condo for en bloc sale at $112 mil

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April 24, 2018 2:04 PM SGT
St Michael’s Condominium, a 60-unit private condo completed in 2002, has been put up for en bloc sale with an asking price of at least $112 million. The existing development contains twin 10-storey blocks sitting on a freehold site of 35,665 sq ft. It is located along St Michael’s Road, just off Serangoon Road in District 12.
The site is zoned for residential use with a plot ratio of 2.8 and maximum height of 36 storeys. The maximum gross floor area (GFA) is therefore 99,863 sq ft, which means the site can be redeveloped into a new residential project with 132 units, assuming an average size of 753 sq ft (70 sq m), says Sieow Teak Hwa, managing director of Teak Hwa Real Estate, the sole marketing agent for St Michael’s Condominium.
St Michael's Condominium with the orange roof (Credit: Teakhwa Real Estate)
No development charge is payable. Due to the high baseline GFA, the potential buyer should also not be affected by any future increases in development charge, points out Sieow. If a 10% bonus balcony space is included, the proposed plot ratio will be increased to 3.08. The asking price of $112 million will translate to a land rate of $1,072 psf per plot ratio (ppr).
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For the owners of St Michael’s condo, the sale price will translate to proceeds of $1.38 million to $2 million each, depending on their unit size. The project has a mix of two- and three-bedroom units, sized from 893 sq ft to 1,518 sq ft.
The last transaction in the development was for a 958 sq ft, two-bedroom unit that changed hands for $960,000 ($1,002 psf) last November. When the project first completed in 2002, a bulk buyer had scooped up 21 units for a total of $12.2 million ($404 psf), according to a caveat lodged with URA Realis then. That was when the property market was in the doldrums and the economy in recession.
The development is now 16-years-old, and is already facing rising maintenance cost issues, with lift and electrical systems requiring repairs. The project is also due for a repainting job. “The en bloc premium will give the owners better options,” says Sieow.
The site is attractive as it has a freehold tenure and is located within 1km of St Andrew Junior School and SAP Hong Wen Primary School, which are top schools in the area, and therefore attractive for families with young children, says Sieow. St Michael’s Condo is also just a 9- to 10- minute walk to Boon Keng MRT station, as well as a 10- to 15-minute drive to the CBD.
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The tender for St Michael’s Condominium will close on May 23.