Yesterday, marketing agent CBRE revealed that the popular Orchard property Park House received the record-breaking sale price of $2910 per square foot per slot ratio (psf ppr). On the other side, freehold District 10 development was sold for 375.5 million dollars at 21 Orchard Boulevard. It clearly indicates the provision of maximum allowable gross floor area around 129,035 square feet for $2,910 psf ppr while excluding around 10% bonus for the balconies.
If we look at the history, this latest deal breaks the benchmark sales price record of Hampton Court that was paid by Swire Properties in Hong Kong in the year 2013 for the collective sale site at Draycott Park. And the surprising fact is, that deal was also brokered by CBRE with a price tag of $2,562 psf ppr.
Shun Tak Cuscaden Residential is a wholly owned popular subsidiary of the well-known Shun Tak Holdings of Hong Kong and the public tender for the famous property of Park House was awarded to them on 1st June. As per the Master Plan developed in the year 2014, this 46,984 square feet site of Park House with a plot ratio of 2.8 was zoned as residential property. Shun Tak Holdings have a target of redeveloping this property into a classic residential development, loaded with all luxurious amenities by 2023.
As per the baseline record of Urban Redevelopment Authority, there is no payable development charge for this property. Park House is known for its rare freehold development of around 60 units that comprises almost four shop units and 56 apartments. Reports say that every apartment unit owner at this property will be receiving a gross payout of around 6.1 million dollar whereas the shop unit owners will be receiving 8.1 million dollars.
CBRE managing director told that they received an overwhelming response from foreign as well as local developers. Before finalizing the deal, they have conducted around 20 site inspections from various developers of Hong Kong, China, Malaysia, Singapore and Indonesia. He also revealed that the biggest reason behind this recording breaking deal was the exclusive location of Park House in Orchard Boulevard, easy access from the site to the shopping belt of Orchard Road and the short walking distance between Park House and Orchard Boulevard MRT Station, that is believed to be completed by 2021.
Edward Ong, collective sale committee chairman of Park House, said that this wonderful deal impressively exceeded the owner’s expectations as the guide price for the site was decided $308 million only. Note that, CBRE has brokered many collective sales this year and the list includes Riviera Point ($72 million), Cairnhill Mansions ($362 million), Pacific Mansion ($980 million), The Estoril ($224 million) and Villa d’Este ($93 million) where Pacific Mansion was the largest collective sale recorded in the current collective sale cycle.
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