Royalville Back With Lower En Bloc Price Tag

Source : The Business Times, Apr 8, 2008

New asking price of $1,106 psf per plot ratio is 10-15% less than before

ANOTHER en bloc sale property is back on the market with a lower asking price.

Royalville in Bukit Timah, off Sixth Avenue, has been relaunched - this time with a 10-15 per cent lower asking price than in October last year.

Second chance: Royalville is now being marketed together with adjoining drainage reserve, with a combined asking price of about $305 million. Some 140 units of an average size of 2,000 sq ft each can be built on the sites

However, the property is still being launched based on last year’s collective sale agreement signed under the old rules and the reserve price is believed to be the same.

Last year, Royalville’s asking price was $330-350 million, which worked out to $1,235 to $1,305 per square foot (psf) of potential gross floor area, including development charges (DC) at the time.

This time, the 174,176 sq ft freehold Royalville site is being packaged with an 8,420 sq ft adjoining drainage reserve being sold by the Official Receiver.

The two properties, which are being marketed by Credo Real Estate, have a combined asking price of about $305 million.

This reflects a unit land price of $1,106 psf per plot ratio inclusive of $6 million DC for the two sites.

The site can be developed into a new condominium with about 140 units of an average size of 2,000 sq ft each.

Based on a land price of $1,106 psf ppr, the breakeven cost for a new condo on the site should be about $1,700 psf, Credo said.

‘New residential developments nearby such as Duchess Residences are transacting in the price range of above $2,000 psf,’ it added.

Last week, Jones Lang LaSalle relaunched Pinetree Condominium located in the Balmoral area at an indicative price of about $1,700 psf ppr, about 20 per cent lower than the previous indicative price of $2,100 psf ppr seven months ago.