A joint venture between Singapore privately held developer Hoi Hup Realty and Malaysian property developer Sunway Developments has bought the 373,800 sq ft site at Brookvale Park off Clementi Road for $530 million. This brings the total tally for en bloc sales in 2018 to nine successful deals for a total of $3.17 billion, says Karamjit Singh, senior consultant at JLL.
Including the estimated development charge of about $26 million, the land cost for the 999-year leasehold Brookvale Park translates to about $932 psf per plot ratio (ppr). If the collective sale is successful, owners can expect to receive gross sales proceeds of between $2.5 million and $4.4 million per unit, says Tan Hong Boon, regional director at JLL.
Under the 2014 Master Plan, the site is zoned “Residential” with a gross plot ratio of 1.6. Including a 10% bonus balcony area, it can be redeveloped into a new condominium with total gross floor area of about 656,494 sq ft.
If the collective sale for Brookvale Park is successful, owners can expect to receive gross sales proceeds of between $2.5 million and $4.4 million per unit, says regional director at JLL Tan Hong Boon (Credit: JLL)
According to Wong Swee Chun, chairman of Hoi Hup Realty, this is the company’s largest investment in its 11 years of partnership with Sunway Group. The joint venture partners cited the centralised location of the plot and its lush and green settings as pull factors.
Last year, 32 properties were successfully sold en bloc for a total of $8.78 billion, notes JLL’s Singh, who reckons that the en bloc market is on track to surpass last year’s tally by mid-2018, should the strong buying momentum and positive outlook for the residential market continue.
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