The 45-unit, freehold D’Grove Villas is up for sale at $420 million (Photo: Samuel Isaac Chua/EdgeProp Singapore)
D'Grove Villas at 8A Orange Grove Road was launched for collective sale on September 2, with List Sotheby's International Realty and Strata AMC as the joint marketing agents. The guide price for the property is $420 million or $2,976 psf per plot ratio (ppr).
Inclusive of the land betterment charge for bonus gross floor area (GFA), the land rate is estimated at $3,099 psf ppr.
The 32-year-old freehold condo has just 45 units and sits at the end of a quiet street off Orange Grove Road. D'Grove Villas is flanked by the 19-unit apartment block at 8 Orange Grove and the 46-unit Orion condo, with Treetops Executive Residences directly opposite.
Read also: Rise in private home ownership among those under 35
Nearby is the Shangri-La Hotel, with the prestigious neighbourhood of Ardmore Park directly behind it. The malls and luxury hotels on Orchard Road and Tanglin Road are within walking distance or a short drive away.
D'Grove sits on a 50,400 sq ft freehold site with a plot ratio of 2.8. It has a maximum gross floor area (GFA) of 141,121 sq ft.
D'Grove Villas sits between 8 Orange Grove apartment block and Orion condo (Source: EdgeProp Landlens)
It is the second collective sale attempt by the owners of D'Grove. The first collective sale attempt was in March 2019, with Centaline Singapore as the marketing agent. The original indicative price in March 2019 was $398 million before being relaunched at $392 million ($2,908 psf ppr) in September that same year.
The collective sale was unsuccessful due to weakened market sentiments in the wake of the cooling measures in July 2018, says Bern Chen, executive director of Strata AMC representing the joint marketing agents. Developers were wary of the risks of acquiring collective sale sites as the government had raised the additional buyer's stamp duty (ABSD) for developers from 15% to 25%, with another 5% non-remittable, he adds.
However, this time around, Chen is confident it will succeed. "Some developers who have made a name for themselves in the luxury market are looking to replenish their land bank," he says.
Source: EdgeProp Buddy
The existing D'Grove Villas has a mix of three- and four-bedroom units ranging from 1,690 sq ft to 2,702 sq ft. Three-bedrooms comprise just nine units, with four-bedroom units of 2,443 sq ft and 2,702 sq ft accounting for 34 units. The remaining two units are penthouses of 5,221 sq ft.
If successful, each owner at D’Grove Villas is expected to receive between $6 mil and $16 mil, depending on the size of their units.
A developer can build a new luxury condo with 40 to 50 units, assuming an average size of 3,000 to 3,500 sq ft, says Chen. He adds that there could be just two units per floor, served by private lifts. "At the top end of the market, buyers want large units with at least four bedrooms."
Based on the land rate of $3,099 psf ppr, and after factoring in construction costs, professional fees and other financial costs, Chen reckons the estimated selling price of the new condo on the site of D'Grove Villas to be about $5,000 psf.
View of D’Grove Villas from Ardmore Park (Photo: Samuel Isaac Chua/EdgeProp Singapore)
According to Chen, Singapore's most coveted residential addresses are Nassim Road, Ardmore Park, Orange Grove, Orchard Boulevard, Cuscaden Road, Tanglin Road and Paterson Hill. Prices in these neighbourhoods have already reached new highs, notes Chen.
He points to the 330-unit Ardmore Park Condo by Wharf Estates Singapore. Typical units at Ardmore Park have four bedrooms and sizes of 2,885 sq ft. Although it is already 23 years old, resale prices have been trending up and, based on caveats lodged from February to July, have ranged from $4,108 psf to $4,472 psf.
Meanwhile, in the Nassim area, the latest condo launched was Les Maisons Nassim by Hong Kong-listed developer Shun Tak Holdings. Launched in 2021, the 14-unit freehold condo is fully sold.
Read also: First-level food court and shop at People’s Park Centre for sale at $27 mil
The typical units in Les Maisons Nassim start from 6,049 sq ft for a four-bedroom to 8,687 sq ft for a five-bedroom. Based on caveats lodged, the average price achieved for these units is $5,477 psf. There are also three penthouses of 11,227 sq ft to 12,077 sq ft. The largest penthouse sold for $75 million or $6,210 psf in October 2021, the highest psf price achieved in the development to date.
There hasn't been a new project launch in the Orange Grove neighbourhood since 2007 when Ho Bee Land rolled out two upscale condos, the 60-unit Orange Grove Residences in January, followed by the 72-unit The Orange Grove in October that year. Orange Grove Residences was completed in 2009, while The Orange Grove was completed in 2010.
Hence, there hasn’t been a new condo project launched in the Orange Grove area in 17 years. As such, he expects the site to attract interest from both developers and investors.
"D'Grove Villas has an auspicious address – 8A Orange Grove and is a prime freehold site in prime District 10," Chen points out. The tender for the site will close on October 23.
Check out the latest listings for D'grove Villas, Condominium properties