In the prestigious neighbourhood of Grange Road, Spring Grove is a rare 99-year leasehold condo among freehold developments because the site has an interesting history. The private condo, located on a sprawling 263,513 sq ft site, was once the residence of the US Ambassador to Singapore.
The site was sold to property giant City Developments in 1991 for $80 million on a 99-year lease for development into Spring Grove. The US government continues to own the underlying freehold title on the site.
Spring Grove, which comprises three 20-storey blocks with a total of 325 units, was completed in 1996. In July 2014, the owners of the stratatitled condo launched a collective sale of the site, with Knight Frank as the marketing agent. The reserve price was set at $1.39 billion and included $245 million payable to the US government for topping up the lease to 103 years. The reserve price translates into a land price of $2,512 psf per plot ratio based on the maximum permissible gross floor area of 553,377 sq ft, according to Knight Frank. The tender closed in September 2014 without any takers.
The 325-unit Spring Grove was completed in 1996
There was no resale of units during the collective sale period in 2014. The following year, however, some owners of units at Spring Grove decided to offload them in the resale market. Prices of low- to mid-floor units sold in 2015 ranged from $1,346 psf for a 1,787 sq ft, four-bedroom unit to $1,680 psf for a 1,012 sq ft, two-bedroom unit on the 15th floor in separate blocks, according to caveats lodged from April to December.
More units were offered for sale in 2016. All five transactions captured by URA Realis from September to December were that of 1,012 sq ft, two-bedroom units. Transaction prices ranged from $1.38 million ($1,364 psf) for a unit on the 10th floor to $1.53 million ($1,510 psf) for one on the 18th floor.
Another 1,012 sq ft, two-bedroom unit was listed for sale on The- EdgeProperty.com at $1.39 million ($1,374 psf). “The owner wants to exit in order to have options on the market as more developers dangle sweeteners to homebuyers,” says Pearl Wong, a property agent from PropNex Realty, who is marketing the unit. It is tenanted at a monthly rental rate of $3,500, which translates into a gross yield of 3.8%, based on the asking price.
The rental rate is in line with market rates, which have ranged from $3,000 to $4,400 per month, based on leasing transactions over the past three months, according to URA data.
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This article appeared in The Edge Property Pullout, Issue 763 (Jan 30, 2017) of The Edge Singapore.