Plum residential development site up for sale
A reserve price of $225.4m was attributed to the property.
Colliers today announced a joint sale of 23 factory units at Hillview Terrace.
A total of 23 factory units make up the total site area of 11,131 square metres, which can be combined with its adjoining access road and electrical sub-station to form a large site area of 14,636 square meters for comprehensive development.
To spur the redevelopment of the area, the Urban Redevelopment Authority (URA) has granted a one-off, time-limited bonus residential GPR of 0.3 above the Master Plan 2019. This, in turn, would raise the allowable GPR from 1.62 to 1.92 and allow for existing landowners to relocate and sell their factories by joint sale. An overall maximum allowable gross floor area of the site is estimated at 302,478 sq. ft. or around 330 units.
For the bonus GPR to take effect, the land must be redeveloped in accordance with the parcellation plan prescribed by the URA. Properties nearby include the adjoining parcel to the south, Hillview Terrace, Hillview Building, and Hillview Warehouse, which can then be developed into a single residential development.
“From a demand perspective, the site characteristics are ideal for residential development given its north-south orientation and commanding views of the Bukit Gombak Hill, Bukit Batok Town Park and Little Guilin to the north. This presents an excellent opportunity for the developer to build a quality project that capitalises on great views of lush greenery and nature. From a supply side viewpoint, the limited supply of development sites island wide presents a rare opportunity for developers to own a 999-year leasehold land in an attractive residential location. With the favorable news of the bonus plot ratio incentive and possibilities of a regular parcellation, developers will enjoy more flexibility in designing their vision and concept for the site,” said John Bin, Director of Capital Markets & Investment Services, Colliers Singapore.
The 999-year leasehold land parcel is for sale at a reserve price of $255.4m, translating into a land rate of $1,336 per square foot per plot ratio (psf ppr). Meanwhile, an estimated development charge of $116.8m and alienation cost of $31.9m are expected. To temper the price, an additional 7% of gross floor area for the balcony incentive scheme can be considered as well, lowering the land rate to $1,289 psf ppr.