The condo first attempted a collective sale in December 2022, targeting $175 million for the property. (Picture: Colliers)
SINGAPORE (EDGEPROP) - The owners of Charming Garden, a 999-year leasehold condominium at 138 and 140 King’s Road, have launched a collective sale tender for the property. According to a press release by Colliers, the marketing agent, on June 21, the owners are sticking to a guide price of $175 million.
The condo first attempted a collective sale in December 2022, targeting $175 million for the property. That tender ended without any successful bids, and the collective sale tender was relaunched in March this year with the guide price unchanged.
Charming Garden sits on an elevated 84,357 sq ft plot in the Farrer Road neighbourhood. The price translates to $2,058 per sq ft per plot ratio (ppr), or $2,074 psf on land area. According to Colliers, the owners of Charming Garden are deliberating a lower reserve price for the development.
“Following the second tender close, an Extraordinary General Meeting was called, and the resolution to reduce the reserve price from $175 million was passed. We are getting the owners to sign the Supplemental Collective Sale Agreement for a lower reserve price,” says Tang Wei Leng, managing director and head of capital markets and investment services at Colliers Singapore.
Based on EdgeProp's Landlens analytics tool, a redevelopment of Charming Garden could see a breakeven price of approximately $3,575 psf. (Map: EdgeProp Singapore)
Charming Garden is within an area designated for two-storey semi-detached housing under the 2019 Master Plan. “Subject to conditions, the Urban Redevelopment Authority has advised that the site may also be restored to the approved flats building,” says Tang.
She adds: “Having the flexibility to develop either landed housing or apartments would provide greater appeal for the prospective buyer. The strong demand for landed residential housing coupled with the low supply has resulted in a 5.9% price increase for landed properties in 1Q2023”.
She says that a future developer who intends to redevelop the site into a landed housing project could construct 112,710 sq ft of landed built-up area without incurring any land betterment charges.
The public tender for the collective sale of Charming Garden closes on July 10.
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