Phoenix Road row of apartments for $42.6 million via collective sale
Colliers International announced on July 29 that a row of apartments with commercial shops on the first storey at 2/A-B to 24/A-B Phoenix Road has been sold to CNQC Realty (Treasure) Pte. Ltd. – a subsidiary of Qingjian Realty (South Pacific) Group Pte. Ltd.
The sale price of $42.6 million, which is above the owners’ asking price of $42 million, works out to an estimated land rate of $630 per square foot per plot ratio (psf ppr) after factoring the estimated differential premium payable.
Mr Steven Tan, Director of Capital Markets & Investment Services at Colliers International, commenting on the sale of Phoenix Road row of apartments and shops, said, “The market dynamics within a given locale remains an important investment decision driver. Based on our analysis, District 23 – where the Property is sited – presents good opportunities for residential development owing to the limited upcoming supply of private homes in the area.”
According to data tracked by Colliers Research, District 23 in north-west Singapore has a supply pipeline of 1,831 non-landed residential units from various new projects – among the lowest upcoming supply compared to other regions. For example, Districts 1 – 8 in downtown Singapore have a total supply of 14,216 units; Districts 19 – 20 in north-east Singapore have 8,735 units; prime Districts 9 – 11 have 7,580 units; while Districts 12- 14 in the city fringe have a supply of 6,368 units.
The Phoenix Road row of apartments and shops is near the Phoenix LRT station, while the Bukit Panjang MRT station and bus interchange are just 8 minutes’ walk away. Apart from the excellent connectivity, the site is also near numerous amenities including Bukit Panjang Plaza, Hillion Mall, Junction 10, HillV2, and the Teck Whye neighbourhood centre, as well as several schools, such as ITE College West, Pioneer Junior College, Choa Chu Kang Secondary, Teck Whye Secondary, and West View Primary.
Mr Tan added, “I think the boutique size and palatable quantum add to the attractiveness of the site as developers continue to study the market for opportunities. I give credit to the owners for striking a good balance in being realistic and opportunistic which I feel strongly encourage developer confidence in buying land under the current market environment.”
The proximity of the Phoenix Road row of apartments and shops to the Bukit Timah Nature Reserve and the green Rail Corridor will also boost the appeal of the future development as home buyers become increasingly more sensitive to environmental sustainability and the quality of the urban environment in which they live in.
Future residents can also look forward to a myriad of amenities in the area, including Bukit Panjang Plaza, Hillion Mall, Junction 10, HillV2, as well as schools such as ITE College West, Pioneer Junior College, Choa Chu Kang Secondary, Teck Whye Secondary, and West View Primary.
Upon successful completion of the sale, each owner of the Phoenix Road row of apartments and shops could potentially receive an estimated gross sale proceeds of $1.08 million to $1.44 million depending on the size of their property.
Mr. Vincent Chia, Chairman of the Collective Sale Committee of the Phoenix Road row of apartments and shops, said, “We are delighted to have achieve this great outcome in our first en bloc sale attempt and in a relatively quiet collective sale market as well. We want to thank all stakeholders, collective sale committee members, and owners for being committed to the process and pressing on despite the challenges. Colliers, in particular, was patient in guiding the owners through the process and their real estate expertise was instrumental in getting this deal across the line. We are glad that the ageing property can now be redeveloped and have a brand-new look.”
The Phoenix Road row of apartments and shops sits on a 5,853.1-square metre (approximately 63,002 square feet) site and comprises a row of 36 units (24 apartments and 12 commercial shops). Under the Draft Master Plan 2019, the site is zoned Residential and has a Gross Plot Ratio of 1.4. The site has a 99-year leasehold tenure with effect from 1 January 1969.
The collective sale tender for the Phoenix Road row of apartments and shops was re-launched on 27 June 2019 and closed at 3 pm on 25 July 2019.
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