Gilstead Court, a prime freehold site in District 11 along Gilstead Road, was launched for collective sale by tender on 6 June by sole marketing agent, JLL.
Built around 1978, the prime freehold site comprises 24 apartments of 129 sqm each and 24 apartments of 136 sqm each, totalling 48 units in three four-storey apartment blocks. More than 80 per cent of the owners have consented to the collective sale and are expecting offers in excess of $168 million.
Under the 2014 Master Plan, the 75,479 sq ft site is zoned ‘Residential’ with a gross plot ratio of 1.4. It may be redeveloped to accommodate a five-storey boutique development. It is just a 250-metre walk to the Novena MRT Station.
Located in the Newton/Novena locale, Gilstead Court is in an established private residential enclave that enjoys a strong following from both the locals and expatriates alike, due to its close proximity to ample amenities, good schools and the CBD. Health City Novena, a world class medical city, is also in the neighbourhood.
“Gilstead Court, with its prestigious address, freehold tenure and proximity to three good schools within 1 km, stands out amidst the many collective sale sites that are presently being marketed”, said Mr. Tan Hong Boon, Regional Director at JLL.
“We expect strong interest for this site due to the reasonable pricing and owners are certainly expecting developers to compete for it and bid well in excess of their reserve price. At the owners’ reserve price of $168 million, it reflects a land rate of approximately $1,590 psf per plot ratio. Factoring in the 10 per cent bonus balcony plot ratio, the effective land rate is only $1,445 psf per plot ratio. As there is a high development baseline for the site, development charge is not payable for the proposed redevelopment even with the additional bonus 10 per cent balcony GFA. This compares favourably with the recent land sales and the strong demand among developers who have bought sites in the vicinity. With no development charge payable, it is insulated from the half-yearly development charge rate revisions by the Chief Valuer, with the next hike expected on 1 September 2018”, he added.
Subject to approval from the Urban Redevelopment Authority, a developer the prime freehold site may potentially configure the allowable GFA of 116,237 sq ft up to 154 apartments.
Established shopping amenities, popular eateries and hip cafes are readily accessible with United Square, Goldhill Shopping Centre, Novena Square, Square 2 and Royal Square all located within walking distance to Gilstead Court. The popular Newton Circus Food Centre is also in close proximity.
By train, Gilstead Court is just two stops to Orchard, three stops to Botanic Gardens, five stops to City Hall Interchange, six stops to Raffles Place Interchange, while by car, it is a mere 15 minutes’ drive to Raffles Place and Marina Bay.
Prestigious schools within 1 km of thhe prime freehold site in District 11 include St Joseph’s Primary Institution (Junior), Anglo-Chinese School (Junior) and Anglo- Chinese School (Baker). Other popular schools within 2 km of the site include CHIJ Primary (Toa Payoh), Singapore Chinese Girl’ Primary School and St Margaret’s Primary School.
“For developers looking for a boutique site to build a prime residential project, the District 11 Gilstead Court with proximity to good schools, ample amenities and excellent connectivity would be a good investment choice.” said Mr Tan.
The collective sale by tender of the prime freehold site in District 11 comes at a time when sentiment in the private residential market continued to be buoyant.
Overall private property prices rose across most market segments, with the largest price surge seen in the Core Central Region (5.5%) and Outside of Central Region (5.6%).
As developers’ existing stock continues to diminish and supply of completed homes remain low, many projects especially those in the CCR have raised prices of their unsold units, some by even double-digits this year. Private residential market continued to gain traction with individual re-sellers have also seized the opportunity of increasing their asking prices in light of the more positive market sentiment fueled by the recent collective sales frenzy.
An earlier report by ET&Co said that higher launch prices at some new projects slowed the buying momentum in the primary market, as sales volume dipped 15.2% quarter-on-quarter. Some developers have also held back their launches in the first quarter in anticipation of higher asking prices. While overall sales had slipped 14.2% q-o-q, volume rose 2.4% on a y-o-y basis.
With positive sentiments of the private residential market, sales is predicted to pick up significantly in the months ahead as more projects are slated to be launched and the prevailing market valuations be supported by banks at the higher benchmark prices.
OrangeTee & Tie research and consultancy head Christine Sun noted: “As it seems, demand for resale homes had rebounded strongly by 67.3 per cent year-on-year, the highest number of Q1 resales since 2012.”
She added: “Owing to higher land cost, stronger economic growth and pent-up demand, we expect prices to trend even higher. Some new homes may even see prices rise beyond 15%, going by the recent pricier enbloc acquisitions.”
Mr Paul Ho, chief mortgage consultant at icompareloan.com noted that Core Central Region (CCR) comprising of Districts 1, 2, 10 and 11 besides District 9, has risen less compared to Rest of Central Region (RCR) for many years now, and that the price differential is narrowing.
“Either RCR is overpriced or CCR is underpriced. For investors who are looking at superlatives, definitely the best of the best will do. Savvy investors (those who already have more than 1 property) will stay away from the market as the prices are crazy and the fundamentals are weak and there is huge supply in the pipeline.
“Current investors, such as those that bought the New Futura comprise mainly of foreigners. I doubt how they will recover their investment given the low rental yields, rising interest costs.
“I got a sense that it is more a portfolio diversification play given that they feel bullish about the Singapore Property market – given that the malaise of over supply has been digested for many years.
“The situation is nowhere as dire. So, this is more about the confidence and the sentiments. The fundamentals of the Singapore property market remains weak.”
The tender for Gilstead Court closes on Tuesday, 10 July 2018 at 2.30 p.m.
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