Rare freehold landed site in Orchard area expected to draw offers of over S$300m

by Albert02

Rare freehold landed site in Orchard area expected to draw offers of over S$300m

Rare freehold landed site in Orchard area expected to draw offers of over S$300m. A 151,205-square-foot (sq ft) elevated freehold residential landed site at 5 Oxley Rise in District 9 has been put up for public tender, with offers in excess of S$300 million expected.

According to CBRE, the property is one of the last remaining freehold residential landed sites in the prime Orchard Road district, and it could be redeveloped into a single large mansion, strata or mixed landed developments, or multiple Good Class Bungalows (GCBs).

5 Oxley Rise is located on a hilltop and consists of two land plots with a two-story bungalow and four outbuildings surrounded by lush greenery.

The bungalow is a historic mansion that has housed many notable figures in Singapore’s history.

Among them are Jewish businessman Sir Manasseh Meyer, who built the nearby Chesed-El Synagogue, and Cheong Eak Chong, a pioneer real estate developer and founder of Hong Fok Corporation and Tian Teck Group.

According to an October 2020 Business Times article, the property is owned by seven members of the same family, all of whom are sons of the late Cheong.

Cheong Hooi Hong, Cheong Keng Hooi, Cheong Kheng Lim, Cheong Sim Lam, Cheong Pin Chuan, Cheong Kim Pong, and Cheong Pin Seng were among them. The majority of them are associated with either the Singapore-listed Hong Fok or the Hong Kong-listed Tian Teck Land.

The site’s bungalow features large windows, spacious balconies, and a terracotta roof, as well as a 360-degree view of the city.

The site is zoned for residential (2-story mixed landed) use, according to the Urban Redevelopment Authority’s (URA) Master Plan 2019.

According to CBRE, subject to approval from the relevant authorities, potential developers and owner-occupiers can consider redeveloping the site to accommodate a single large mansion, a strata or mixed-use landed development, or multiple GCBs.

CBRE’s Singapore capital markets head Michael Tay stated that plum landed sites larger than 100,000 sq ft are typically tightly held and rarely put up for sale, citing the property’s location in one of Singapore’s most exclusive and highly coveted residential enclaves.

“As a result, these prestigious asset classes have proven to be resilient across various market cycles.”

“We anticipate that this trophy asset will attract offers in excess of S$300 million due to its prime location and superior physical attributes.”

Recent landed transactions in the area include 2 Cluny Hill, which sold for S$63.7 million – S$4,291 per square foot per plot ratio (psf ppr) – in April 2021, 30 Nassim Road, which sold for S$128.8 million (S$4,005 psf ppr) in March 2021, and 33 Nassim Road, which sold for S$230 million (S$2,721 psf ppr)

“We understand that if the existing mansion is preserved, the URA will consider gazetting the site as a Good Class Bungalow Area (GCBA).” Tay added.

“With only 39 gazetted GCBAs in Singapore, this is an opportunity for developers to develop a product within a brand new GCBA.”

The most prestigious type of landed housing in Singapore is bungalows in gazetted GCBAs, with the URA imposing strict planning conditions to preserve their exclusivity and low-rise character.

The land would cost S$1,984 per square foot at a selling price of S$300 million, according to KH Tan, managing director of Newsman Realty, and is “not very expensive, compared to say, the Holland belt.”

Singapore Realtors Inc co-founder Bruce Lye concurs.

“In today’s market, prime District 9 land zoned for landed development can easily command in excess of S$2,500 psf,” he said.

“However, given the large size of the parcel, the buyer would most likely be a local family office looking to land bank, or a luxury developer looking to capitalize on the demand for prime brand new GCBs.”

However, Realstar Premier founder William Wong believes that converting the site into a GCBA is “almost impossible” due to the “quite high” housing density in the Oxley area.

“Depending on how they carve out the plot,” Wong said, “the buyer is more likely to develop boutique-sized bungalows ranging from 5,000 to 7,000 sq ft each on it.”

“They can then be sold for S$4,000-S$4,500 per square foot of land, or around S$20 million for a small bungalow.”

The majority of landed houses in prime areas are located in Districts 10 and 11, and the supply of new landed housing in District 9 is “almost non-existent,” he adds.

5 Oxley Rise is located between the Central Business District and Orchard Road, providing easy access to nearby amenities such as popular food and beverage and lifestyle destinations, Robertson Quay and Clarke Quay; parks such as Fort Canning Park and Pearl Bank Park; private clubs such as The Tanglin Club and The American Club; and medical facilities such as Mount Elizabeth Hospital, Mount Elizabeth Medical Centre, Gleneagles Hospital, Camden Medi Centre, and Camden Medi Centre.

River Valley Primary School, St Margaret’s Primary School, and Anglo-Chinese School Junior are all close by.

The Central Expressway, River Valley Road, and Penang Road are all major arterial roads and expressways that lead to the site.

The public tender will close on June 8 at 3 p.m.

Click the image to read the full details of report.
Source: https://www.businesstimes.com.sg/real-estate/rare-freehold-landed-site-in-orchard-area-expected-to-draw-offers-of-over-s300m-0

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