Upper Changi Road freehold landed residential redevelopment owners lower asking price by $2.2 million
Knight Frank Singapore on July 24 announced the relaunch of the sale of a freehold landed residential redevelopment site along Upper Changi Road, with a lower asking price. Knight Frank is the sole marketing agent for the Upper Changi Road freehold landed residential redevelopment site, which is up for sale by Expression of Interest (EOI).
537 Upper Changi Road is an existing, freehold single-storey house with a site area of 1,413.2 sqm (approx. 15,212 sq ft). Under the 2014 Master Plan, the Upper Changi Road freehold landed residential redevelopment site is zoned “Residential, 3-storey mixed-landed”. Regular in shape, the site enjoys dual frontage onto Upper Changi Road and Jalan Angin Laut.
Ms Mary Sai, Executive Director, Investment and Capital Markets, Knight Frank Singapore, said, “During the earlier exercise, the owner received several bids, but they failed to meet the previous asking price of $16 million. After much consideration, the owner agreed to launch the property for sale again at $13.8 million.”
Subject to approval from the authorities, the Upper Changi Road freehold landed residential redevelopment site can be redeveloped into eight terrace houses.
|Existing Development:||4 single-storey houses|
|Site Area:||1,413.2 sq m (approx. 15,212 sq ft)|
|Master Plan 2014:||“Residential, 3-storey mixed landed”|
With an indicative guide price for the Upper Changi Road freehold landed residential redevelopment site of approximately $13.8 million, this translates to a land rate of approximately $907 psf.
The Upper Changi Road freehold landed residential redevelopment site is nestled within an exclusive landed residential enclave and is in good proximity to amenities and exhibitions spaces at Eastpoint Mall, Singapore Expo and Changi City Point. Expo MRT interchange and Simei MRT station on the East-West Line and Upper Changi MRT Station on the Downtown Line are also located within the vicinity of the Upper Changi Road freehold landed residential redevelopment site.
The EOI for the Upper Changi Road freehold landed residential redevelopment site will close on 22 August 2019, Thursday at 3 pm.
Mr Paul Ho, chief mortgage officer at iCompareLoan commenting on the Upper Changi Road freehold landed residential redevelopment site said, Ho said that “as the sales proceeds start to come in from the en bloc sales completion from now till end 2019, landed properties will seem attractive to some buyers. Especially the Inter-terrace segment will hot up.”
This Mr Ho believes is because en bloc sales homeowners who are flush with cash, will resort to value hunting instead of choosing smaller condominiums which are beginning to sell at unbelievable prices.
Dr Lee Nai Jia, Senior Director and Head of Research at Knight Frank Singapore said in an op-ed in Business Times in Sep 2019 that “now is the right time to buy landed property.”
“The supply of landed homes has been limited. From Q4 2008 to Q2 2018, the total stock of landed homes rose 6.4 per cent, from 68,761 units to 73,150 units. Yet, the total stock of non-landed homes went up by about 70 per cent from 172,443 units to 293,593 units over the same period.
With a lack of a strong supply of landed homes, it appears that prices of landed homes tend to trend up more than prices of non-landed homes during an upswing in prices. The Urban Redevelopment Authority’s (URA) residential price index for landed homes rose 87.7 per cent during the upswing from Q2 2009 to Q3 2013, while prices of non-landed homes appreciated 56.2 per cent over the same period.”
An earlier research by CBRE said that the total number of transactions for landed projects in 2018 is expected to be around 300 units, with the majority of units sold outside the Core Central Region. CBRE added that freehold projects will present a better value over leasehold projects in the growing landed property market.
Joseph Tan, Executive Director at CBRE Asia Pacific, speaking at a Propertyguru seminar in May 2018 said:
“As of now, the total number of housing units offered in the market is 380,000. Landed properties only consist of 1.5 percent of the total housing stock, a small supply compared to non-landed properties which comprise 98.5 percent. Around 90 percent of landed properties are freehold while the remaining 10 percent are leasehold.
“Non-landed homes priced at $1 million to $2 million remain most favoured amongst Singaporeans. For landed homes, most investors prefer those priced at $2 million to $3 million. However, the gap between property prices for 99-year leasehold and freehold landed properties is quite narrow due to the scarcity in this category.”
Mr Ho said that given the land scarcity in Singapore, demand for landed property 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 landed property in Singapore he added.
“The value buys in the property market right now are are landed inter-terrace houses which’s per square feet price on the built-up area is usually less than $1,000, but the bigger challenge for buyers of landed property is securing the best home loans. With the right loan, the buyer can save thousands, if not tens of thousands of dollars. Which is why they would have to work with established mortgage brokers who can provide them this free service.” – Paul Ho
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