The owners of eight townhouses along Kovan Road have put up their property, Cheng Hoe House, for collective sale at an asking price of $28 million.

Cheng Hoe House comprises freehold townhouses at 10 Kovan Road, on a 22,485 sq ft plot. The site is zoned for residential use, with a plot ratio of 1.4 and a maximum allowable height of 5 storeys. The potential gross floor area (GFA) of 31,479 sq ft translates roughly into 29 apartments spanning 1,076 sq ft each, based on estimates by Teakhwa Real Estate, which is marketing the property.

The reserve price of $28 million translates into $1,083 psf, which also includes the estimated development charges of about $6.1 million. Including the 10% bonus balcony GFA, the land rate will be reduced to $1,053 psf, says Teakhwa Real Estate.

The property is located in the Kovan residential estate, which is surrounded by predominantly landed and low-rise housing. It is a five-minute walk to Kovan MRT Station and under a ten-minute drive to Rosyth School and Paya Lebar Methodist Primary School.

Teakhwa Real Estate expects a selling price of about $1,800 to $1,850 psf for the new development.

The tender for the site will close on September 19.