Amber Park sold for S$906.7m in record freehold en bloc sale.
SINGAPORE: Amber Park, a 200-unit freehold condominium in Katong, has been snapped up for S$906.7 million in Singapore’s largest freehold collective sale by dollar value, marketing agent JLL said on Wednesday (4 Oct).
The condominium, which was built in 1986, was bought by City Developments Ltd (CDL), through its wholly owned subsidiary Cityzens Development, and joint-venture partner Hong Realty.
This is the fourth time that Amber Park has been put up for sale. The sale comes as the local en bloc market continues to heat up, with the tender for Amber Park receiving as many as eight bids.
The sale price reflects a land rate of about S$1,515 per sq ft per plot ratio, based on the allowable gross plot ratio of 2.8, JLL said. At this sale price, the owners would expect to receive gross sale proceeds of between S$4.3 million and S$8.3 million, it added.
Subject to approval, CDL and Hong Realty plan to redevelop Amber Park into a luxury condominium development. The current site has an area of 213,675 sq ft, and an allowable gross floor area of about 598,290 sq ft.
CDL said the development will maintain its freehold status.
Ms Christine Li, director of research at Cushman & Wakefield Singapore, said the latest sale will have implications on future en bloc deals.
“Looking at the price, it is relatively bullish which means choice sites are still highly contested by both the local and foreign developers. It probably means it is the new benchmark prices set for Katong area. That will actually help some of the existing projects – particularly the older projects – which are interested to go for en bloc to look at the new price point.”
“From next year onwards we are going to see developers launching new projects at a higher prices, probably 10 to 15 per cent higher than what we have been seeing in the market today.”
Mr Desmond Sim, head of research at CBRE Singapore and Southeast Asia, agreed with Ms Li – he said the sale price reflects the huge appetite and optimism among developers.
“En bloc seems to be the rage now. The price points out that there are still developers out there that are still hungry for land and what’s happening at the Government Land sales at the moment does not suffice to appease their hunger. Developers are also looking forward instead of backward pricing, that’s why we see such competitive bids coming through.”
ESTABLISHED PRIVATE RESIDENTIAL ENCLAVE
Mr Tan Hong Boon, regional director at JLL, said: “There are not many sites of similar size that are available for redevelopment in the Amber Road location … Amber Park could possibly be one of the last collective sale sites with a land area above 200,000 sq ft in this precinct.”
The Amber Road area is an established private residential enclave that enjoys a strong following from both locals and expatriates alike, due to its proximity to the central business district, East Coast Park and the airport.
The site is also within 1km to Tanjong Katong Primary School and 2km to CHIJ (Katong) Primary, Haig Girls’ School, Kong Hwa School and Tao Nan School, which are popular primary schools.
Connectivity will be further enhanced when Tanjong Katong MRT station, located 200m from the site, is completed in 2023.
Mr Sherman Kwek, CDL CEO-designate, said: “This is one of our most significant investment deals in the Singapore residential market in recent years. CDL was the original developer for Amber Park in the 1980s and we are honoured to be able to redevelop the site into yet another iconic landmark.”
Additional reporting by Brandon Tanoto.
Date : 5 May 2019
City Developments Ltd (CDL) and joint-venture partner Hong Realty, sold 115 units at Amber Park as at 5pm on Sunday, May 5. The figure translates to 77% of a total of 150 units released for sale on launch weekend. Based on an average selling price of $2,425 psf after an early bird discount, total sales over the weekend amounted to more than $240 million. It was considered “the best-selling new, freehold property launch this year”, says CDL.