Three adjacent landed homes in Telok Kurau put up for collective sale at a reserve price of $25 million
PropNex on announced that three freehold landed homes in Lorong N Telok Kurau were put up for collective sale via tender on 19 November 2020. The owners’ reserve price of $25 million works out to a land rate of $902 per square foot per plot ratio (psf ppr) after factoring the 7% bonus gross floor area for balconies.
The site of the three adjacent landed homes in District 15 – 93B, 93C, and 95 Lorong N Telok Kurau – have a combined freehold land area of 18,507 sq ft.
Under the Urban Redevelopment Authority’s Master Plan 2019, the site of the three adjacent landed homes is zoned Residential with a plot ratio of 1.4.
Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “This is a rare opportunity to acquire a freehold redevelopment site that is nestled within an established private residential enclave in Telok Kurau. We expect to see strong interest for the combined site, given its good location as well as the bite-sized quantum, which will present lower development risk for developers amid the pandemic and uncertain macroeconomic environment. With the robust home sales and positive market sentiment, developers are looking out for choice residential sites to augment their development pipeline and we believe this Telok Kurau site will appeal to them.”
The collective sale site is located in an amenity-rich area near East Coast Road, which is known for its F&B offerings, and it is also a stone’s throw from the East Coast Park beach. Other amenities in the vicinity of the three adjacent landed homes include the Parkway Parade mall and the 112 Katong mall (which is currently undergoing renovation).
In addition, there are also several popular schools nearby, including CHIJ (Katong) Primary, CHIJ Katong Convent, Ngee Ann Primary School, St. Stephen’s School, Tao Nan School, St. Patrick’s School, and Victoria Junior College. The site of the three adjacent landed homes is within walking distance (about 500m away) to the upcoming Marine Terrace MRT Station on the Thomson-East Coast Line that is slated to be ready in 2024.
Subject to relevant approvals from the authorities, the combined site – with a total gross floor area of 27,724 sq ft inclusive of balconies – can be redeveloped to a boutique private residential project, offering about 24 new units at an average size of 1,076 sq ft each.
The collective sale tender for the three adjacent landed homes will close on 29 December 2020 at 3 pm.
Since the 1960s, Telok Kurau has been a sleepy and tranquil suburbia in Katong, known mostly as a middle-class residential enclave. The suburb roughly covers Telok Kurau Road, which is intersected by several smaller roads: Lorongs G, H, J, K, L, M and N Telok Kurau; Jalan Baiduri; St Patrick’s Road; Joo Chiat Avenue; and Joo Chiat Place.
The charm of this area has been attributed to the presence of unimposing buildings: a mix of modest bungalows, terrace and semidetached houses as well as low-rise apartments that exist among coffeeshops and small businesses. Despite the thronging urban development in nearby Katong, the Telok Kurau area has managed to retain its charm.
Since the 1990s, new housing projects have altered the landscape of Telok Kurau, though not drastically. Low-rise buildings still dominate the landscape, with few tall condominiums in the area. New semidetached houses have sprung up and, together with freshly painted terrace houses, they constitute a notable feature in the changing landscape of Telok Kurau.
Telok Kurau is an established residential zone that grew from an old fishing village into a blissful suburban neighborhood. Despite being one of Singapore’s older districts, it happens to be very well-planned, having streets that run neatly parallel and perpendicular to each other.
The estate is populated by landed homes and shop houses, fostering a pleasant setting for community and family living. Making it even more ideal are the surrounding malls, schools, and various facilities, not to mention the nearby East Coast Park. That’s why Telok Kurau in District 15 is very appealing, both among property developers and home buyers.
Mr Paul, chief mortgage officer at iCompareLoan, said that “although the Covid-19 circuit breaker makes real estate sales difficult at the moment, the site of the three adjacent landed homes in Telok Kurau is in a good location and is hard to come by.” Mr Ho believes smart investors who are flush with cash, will resort to value hunting instead of choosing residential properties which are still selling at unbelievable prices.
Mr Ho added that given the land scarcity in Singapore, demand for commercial and residential properties in Singapore will continue to rise over the long term. He pointed out that Singapore continues to be a global financial centre and a trade hub with high livability scores – all of which attracts high net worth investors to the Republic. All these factors will inevitably fuel demand for real estate in Singapore he added.
Mr Ho believes that value buys in the property market right now are are landed inter-terrace houses where the per square feet price on the built-up area is usually less than $1,000 and commercial properties. But Mr Ho cautioned that the bigger challenge for buyers of commercial property is securing the best commercial loans.
“With the right loan, the buyer can save thousands, if not tens of thousands of dollars,” he said. Adding, “which is why they would have to work with established mortgage brokers who can provide them free service.”