This week in property: En bloc market to peak, Tulip Garden sold for $907 mil, Golden Shoe Car Park becomes CapitaSpring, Great World City revamps

By EdgeProp Singapore / EdgeProp | April 13, 2018 3:02 PM SGT
Property highlights of the week from April 9 to April 13
The current en bloc cycle is nearing its peak and is expected to slow down by the second half of 2018, according to a report by RHB analyst Vijay Natarajan.
The increase in pipeline supply of residential units, rising land costs, tighter policy framework and developers’ sufficient restocking of landbank are key factors contributing to the slowdown. The weaker demand can be seen in the fall in premium developers have paid over the reserve price; from 10% in 2017 to 5% this year, says the report.
Tulip Garden, the freehold condo located along Farrer Road in District 10, has been sold en bloc for $906.889 million. The buyer is said to be Asia Radiant; a joint venture between Hongkong Land’s subsidiary, MCL Land, and Singapore-listed Chinese real estate developer Yanlord Land Group. The purchase price is 20.4% higher than the Tulip Garden owners’ reserve price of $753 million.
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In terms of transacted absolute price, Tulip Garden is the second highest collective sale deal this year to date, after Pacific Mansion, which was sold for $980 million last month.
The purchase price of $906.889 million translates to a land rate of $1,790 psf per plot ratio (psf ppr), surpassing that of recent collective sale transactions in the Holland Road-Farrer Road neighbourhood, namely Hollandia ($1,703 psf ppr), The Estoril ($1,654 psf ppr) and The Wilshire ($1,536 psf ppr).
The former Golden Shoe Car Park at 88 Market Street has been renamed CapitaSpring by joint venture partners CapitaLand, CapitaLand Commercial Trust (CCT) and Mitsubishi Estate Co. The 51-storey skyscraper has secured global investment bank JP Morgan as its first anchor tenant.
JP Morgan will occupy a total of 155,000 sq ft of space spanning levels 24 to 30 of the tower. This is equivalent to a quarter of the net lettable area of 635, 000 sq ft at CapitaSpring. JP Morgan will be relocating from Capital Tower, where it has been an anchor tenant since 2001. Incidentally, Capital Tower is also part of CCT’s portfolio of commercial properties.
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Scheduled for completion in 1H2021 and with a height of 280m, CapitaSpring will be one of the tallest skyscrapers in Raffles Place.
Great World City, a 20 year-old mall located in the heart of River Valley will be undergoing a major revamp in the middle of April.
The enhancement work will be carried out in two phases over two years, and is projected for completion by 3Q2020. Customers will still be able to enjoy the leisure amenities in the mall throughout the refurbishment, although some businesses will face disruption.
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The management has planned for a new layout, reconfiguring the interior walkways and escalators to improve accessibility for shoppers. The interior of the mall will be redesigned in a contemporary look to match its façade, with new skylights, flooring and ceiling. Customers will be able to access the shopping centre from three entrances linked to the Great World MRT station when it opens in 2021.