At a guide price of $63 million, owners of a 26-unit walk-up development at 52 to 62H Tanjong Katong Road in Singapore have relaunched the property for tender. The four-storey development was first put up for collective sale in July last year, with an indicative price of $65.5 million. Despite several offers below the asking price, the sole marketing agent, Huttons Asia, is optimistic of interest in the 9,999-year Tanjong Katong site.
The site has a land area of around 32,397 ft and is zoned for residential use with an allowable gross plot ratio of 1.4 under the 2019 Master Plan. This could theoretically yield 45,356 ft of gross floor area upon redevelopment, with the potential to house 49 apartments with an average size of 915 sq ft.
At a land rate of $1,401 psf per plot ratio (psf ppr) after taking into account an estimated land betterment charge of about $530,000, the price could further drop to $1,375 psf ppr after accounting for a potential bonus balcony gross floor area of 7%.
Terence Lian, head of investment sales at Huttons Asia, believes that the collective sale’s convenient location close to the Central Business District (10 minutes by car) and the Paya Lebar MRT Station (500m away) could appeal to young couples and professionals looking for a new home. Surrounding amenities include popular malls such as PLQ, i12 and Parkway Parade, while the Singapore Sports Hub, East Coast Park and a host of local F&B and cafe offerings in Katong and Joo Chiat are also nearby.
The tender for the property closes on May 9 at 2pm.
Recent data suggests that the property could be in for a favourable sale, with City Developments and MCL Land’s 638-unit Tembusu Grand condo project, located off Tanjong Katong Road, having seen 53% of units sold at an average price of $2,456 psf during its launch weekend on April 8 and 9.
If the Tanjong Katong site is sold, the price could potentially be the highest achieved in the area in recent years and yet another testimonial to the resilience of the residential property sector.