Tai Wah Building for sale at $81 million

Tai Wah Building

Built in the 1980s, Tai Wah Building comprises six apartments and two shops. (Photo: Edmund Tie & Company)

The freehold Tai Wah Building at Killiney Road has been launched for collective sale after obtaining consent from all the owners, marketing agent Edmund Tie & Co. said on Monday (9 October).

The asking price for the property is $81 million, or $2,035 psf per plot ratio of potential gross floor area (GFA). No development charge is payable.

Completed in the mid-1980s, the four-storey Tai Wah Building comprises two shops and six apartments.

The approximately 13,148 sq ft site is zoned residential with commercial at first storey under the 2014 Master Plan. It could be redeveloped up to its existing GFA of about 39,809 sq ft, exceeding the permissible plot ratio of 2.8.

The Orchard Road shopping belt and Somerset MRT station are within walking distance.

“Tai Wah Building can be redeveloped into a boutique residential development with valuable commercial space on street level enjoying prominent visibility onto Killiney Road,” said Swee Shou Fern, director of investment and advisory at Edmund Tie & Co.

“The property is also ideal as a serviced apartments development, subject to planning approval.”

The public tender exercise will close on 15 November 2017.

credits: proeprtyguru

Collective sale fever “sustainable”, says JP Morgan

Amber Park resized

View of Amber Park, a 200-unit development in Amber Gardens. (Photo: JLL)

JP Morgan believes the collective sale frenzy in Singapore is “sustainable” as the number of unsold housing units in the pipeline, excluding executive condos, has dropped for three consecutive quarters to an all-time low of 10,303 units as at Q2 2017, reported the Straits Times.

JP Morgan analyst Brandon Lee noted that developers haven’t also replenished their land banks enough in order to offset the units they are selling.

With 25 deals closed, en bloc sales of residential sites have reached $5.2 billion so far this year, making 2017 the third-biggest year of collective sales after 2007 with $12.2 billion and 2006 with $8.2 billion.

This year’s 25 transactions provides “clear evidence of another en bloc cycle in the making, which traditionally lasts at least three years”, said Lee.

“We expect this to result in immediate displacement demand, improved vacancy and higher selling prices,” he added.

In fact, real estate stocks received a boost from the success of two large collective sales last week.

UOL Group emerged as one of the biggest winners as its shares soared 4.3 percent or 35 cents to $8.55, while City Developments Limited (CDL) shares rose 1.7 percent or 19 cents to $11.60. Wheelock Properties shares, on the other hand, increased 3.9 percent or 7.5 cents to $1.98.

On 4 October, CDL via its Cityzens Development unit and a joint-venture partner from Hong Leong Group acquired Amber Park for $906.7 million, which marked the largest freehold en bloc sale deal, while Kingsford Huray Development acquired Normanton Park the following day for $830.1 million.