City Towers in Singapore is a freehold condo that has sold for $401.9 million. The property consists of 77 apartments and 2-story units, a penthouse, and a shop. The present residential owners are expected to receive 2.78 to 11.5 million dollars from the sale.
The price equals to $1,847 per square foot per plot ration or psf ppr. This is the amount after factoring in the development charge (DC) which is estimated to be of $3.5 million in this case.
City Towers is a 17-story building and the land rate is slightly higher than the $1,840 psf ppr received for the nearby property Crystal Tower that sold in November of 2017.
According to the marketing agent Colliers International, City Towers went up for bidding on January 4, 2018, and closed on February 7, 2018. The bidding was exceptionally intense with 7 competitive bids at the time the bidding closed.
City Towers attracted very strong competition in bids due to its idyllic location near exceptional schools, the Stevens and Newton MRT stations, and a large range of amenities, according to Colliers.
The winning bidder will be able to take advantage of the residential market as it continues to recover. City Towers runs along Bukit Timah Road with a land mass of 104,531 square feet and proposed floor space of 219,516 square feet.
The developers will face several unique challenges that happened with the Pearlbank Apartments in the Outram area. Also, no deal was reached for Cairnhill mansions in District 9 with an asking price of $362 million.
Potentially, City Towers can be redeveloped to a 24-story building, providing 190 new units consisting of about 1,098 square feet per unit. The site is will not be liable to the pre-application feasibility study which includes the impact of traffic, which is normally required for redevelopment of sites with a significant increase in dwelling units beyond the existing units.
According to the sale committee, the sales process was conducted very quickly and professionally.
When dealing with collective sales projects, the competition is usually very intense and it’s fabulous that Colliers International and Dentons Rodyk were able to get an excellent outcome for the present owners, despite competition from other sites that launched for collective sales, especially in the 9th and 10th Districts.
Even though recovery is good in high-end residential areas, the developer has the flexibility to adjust the size of the units in order to make them more affordable. The average selling price is approximately $3 million which is very competitive for homes in the 10th District.
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