MAISON Royale, a freehold residential site in Newton, has been put up for collective sale.
Maison Royale: Asking price for the 20-unit project is at least $50m. Some 40 units of about 1,000 sq ft each can be built on the condo site in NewtonOwners of the 20-unit project are asking at least $50 million. Including an estimated $300,000 development charge (DC) and taking into account a plot ratio of 2.8, the price works out to $1,273 per square foot per plot ratio (psf ppr).
In contrast, nearby Lincoln Lodge was sold for $243 million, or $1449 psf ppr including an estimated DC of $413,000 in June last year at the height of the en bloc frenzy.
The project was bought by a consortium comprising Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group. Their offer was the highest of several bids then. The developers have yet to tear down Lincoln Lodge to put up a new development, and have instead allowed occupants to keep renting for at least six months from the sale completion date in July this year.
The comparatively lower price for Maison Royale is in line with current weaker market sentiment, said Charles Chua, head of investment sales at PropNex Realty, which marketing the project.
'Maison Royale is priced at a level where developers can feel that it is still worthwhile for them to go in,' he said.
Maison Royale is on 14,107 sq ft of land. It is located at the junction of Newton and Surrey roads, a three-minute walk from Novena MRT station. Some 40 units of about 1,000 sq ft each can be built on the site, PropNex said.
If the site is sold for $1,265 psf ppr, the breakeven cost will be around $1,665 psf, it said. The successful developer could launch the apartments in the new development at around $1,915 psf, the firm added.
The tender for Maison Royale closes on Sept 9.
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