Horizon Towers (on the left), a business skyscraper that is 56 years old, and Sultan Plaza, a commercial building that is 45 years old.
SINGAPORE (Reuters) – Some older luxury leasehold homes on Orchard Road that are trying to sell as a group are under a lot of pressure.
Horizon Towers in Leonie Hill renewed a collective sale offer for the third time on Tuesday with the same $1.1 billion reserve price as before. This is despite the fact that the prestigious District 10 condo Orchard Bel Air’s $587.5 million bidding ended with no bids.
The Straits Times says that the 200 apartment owners in Horizon Towers will get between $4.7 million and $5.2 million, and the 11 penthouse owners will get between $9.2 million and $10 million.
Horizon Towers has 56 years left on its lease, and its marketing agent, JLL, says that it is “by far the most reasonably priced private residential property in and around Orchard Road this collective sale cycle.”
When the expected $277 million lease top-up premium is subtracted from the reserve price, the land rate is about $2,049 per square foot per plot ratio (psf ppr).
“Because there is no development charge for intensifying the site, even with the 10% bonus gross floor space due to a high development baseline,” said Mr. Tan Hong Boon, executive director of capital markets at JLL.
After taking into account a $131 million upgrade premium for the lease top-up, Orchard Bel Air’s guide price of $587.5 million comes out to a land rate of about $2,600 psf ppr.
There is no fee for development. Including the 7% bonus gross floor space that can be used for balconies, this comes out to $2,526 psf ppr.
Orchard Bel Air has 71 apartments, and the leases end 57 years from now.
Tuesday, no one bid on Orchard Bel Air’s offer of $587,500,000. KNIGHT FRANK PHOTO
ST has heard that the owners of the 99-year leasehold unit have started talking to people who might be interested in bidding.
Horizon Towers tried a collective sale for the first time before the cooling measures were announced on July 6, 2018, and again in 2019. Both bids ended without anyone buying them. The current bid ends at 3 p.m. on October 20.
In the 2019 Master Plan, the 1.9ha of land is called “residential,” and it can have up to 36 stories. It could be rebuilt into a luxury high-rise project. It is located within walking distance of Great World and Orchard MRT stations.
Also, Sultan Plaza, a 45-year-old commercial building, will relaunch on Friday with a lower reserve price of $325 million. This is because a previous tender at $360 million ended on June 28 with no buyers. Its first en bloc sale effort in 2019 was for $380 million.
According to its marketing agent, the current tender won’t end until either 80% of the bidders agree to the lower price or a verified bidder is found.
There are 211 commercial units and 33 offices on the 52,471-square-foot commercially zoned site, for a total of 244 strata lots.
Mr. Sieow Teak Hwa, the managing director of marketing agent Teakhwa Real Estate, says that about 80% of the owners by strata area and 72% of the owners by share value have agreed to lower the reserve price to $325 million.
Mr. Sieow says that at $325 million, shop owners will get between $147,000 and $41.8 million and office owners will get between $560,000 and $1.85 million.
People’s Park Centre’s $1.8 billion collective sale tender closes without an offer.
The Euro-Asia Apartments were sold as a whole for $222 million, which was more than the estimated price of $218 million.
The suggested reserve price is equal to a land rate of $1,545.80 psf ppr, which includes the expected costs of buying state land, the differential premium, and the lease top-up premium. After adding an 8% bonus to the gross floor area, it will average $1,504.30 psf ppr.
The Singapore Land Authority has given preliminary approval for the possible sale of 10,968 square feet of state land next to the site.
The property could be made bigger by about 63,439.8 square feet and fixed up so that it has a gross floor space of 317,198.9 square feet.
Aside from being used for business, the land can be fixed up for mixed use, with 20% of the floor space being used for business and the other 80% for residential use.
Mr. Sieow said that this could lead to a new 38-story project with 277 apartments that are each about 915 square feet, if the authorities give their approval.
It could be turned into a 700-room hotel with space for shops and businesses.
No extra buyer’s stamp duty is needed for the business location.
If the Enbloc works, the price at which Horizon Tower can be sold will be high. People who can’t wait too long for it to be sold and put on the market may want to look at other options, such as Lentor Hills Residences and Tenet EC. Guocoland and TID Residential are working together to build Lentor Hills Residences at Lentor Hills Road.
Beside that you can look at The Reserve Residences in Jalan Anak Bukit. The Reserve Residences is a new high-end housing complex in Singapore’s Upper Bukit Timah, District 21. The development gives its residents a unique and exclusive way of life, as well as comfort and convenience that can’t be found anywhere else. It has two towers that are each three stories tall, giving it a total of 700 units. There are one-bedroom apartments, four-bedroom apartments, duplexes, and penthouses, as well as other types of units, to meet different needs.
Up to 700 residential units and 150 service apartments are expected to be part of this new commercial and residential development.
In a podium, this project has about 20,000 square meters of retail, food and beverage, and office space.
The new executive condo in Tampines North will be called Tenet EC. Qianjian and Santarli are working together to develop Tenet EC.