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News Release

Singapore

Eunosville collective sale tender re-launched




SINGAPORE, 9 December 2013 – Eunosville, a 330-unit residential development located directly opposite Eunos MRT Station, has been re-launched for collective sale by tender, by sole marketing agent Jones Lang LaSalle. The development was first launched for collective sale in June this year, but its maiden attempt was stymied by the introduction of the Total Debt Servicing Ratio (TDSR) framework the same month.“When the tender closed in August, we received written expressions of interest from three large developers who found the site attractive on many counts, in particular having an MRT station at its doorstep. But as this was shortly after the introduction of TDSR, they asked for more time to assess the market, given that it entails commitment to a large scaled project,” says Mr Karamjit Singh, Head of Investments and Residential at Jones Lang LaSalle

He added: “The market is adjusting to life post-TDSR. We see it beginning to find its footing at a price point that is a notch below pre-TDSR levels, with the likelihood of stability thereafter especially in the premium mass-market sector. This is backed by high liquidity and savings, continued increase in population, albeit at a slower pace, and a lack of alternative attractive investments for many households. Consequently, specific projects that are priced sensitively and that enjoy unique selling points would continue to sell well. This was clearly evident in the case of Duo Residences and Alex Residences.”
 
Duo Residences at the Bugis area was reported to have sold more that 87% of its total 660 residential units at an average price of about $2,000 psf, whilst the 429-unit Alex Residences over at Alexandra View area has sold 75% of the 200 units released for sale at an average price of $1,650 psf. Both are 99-year leasehold projects and within close proximity to MRT stations.
 
“The number of bidders in the latest tenders for Government Land Sale (GLS) sites have also been healthy with 8 to 9 bidders vying for adjoining residential sites at Upper Serangoon View and Mount Sophia. Even the top bid prices displayed confidence in the broader residential market,” noted Mr Singh. “Amid the more stable market environment now and given Eunosville’s strategic location just 90 metres across the Eunos MRT station, owners of Eunosville are hopeful of keen interest from developers this time round.”
 
Eunosville was built in the late 1980s by the former Housing & Urban Development Company (HUDC), a unit of the Housing and Development Board (HDB), and was privatised in 2011. With a land area of approximately 376,712 sq ft and zoned “Residential” with a gross plot ratio (GPR) of 2.8 under the Master Plan 2008 and the Draft Master Plan 2013, the site could potentially yield 1,000 units with an average size of 1,100 sq ft.
 
“Being surrounded by low-rise developments and landed housing estates, the new project could have unobstructed view vistas from the higher-floor units, and some units may even have glimpses of the east coast sea view” says Mr Singh. “Moreover, the regular-shaped site enjoys wide road frontages on to both Sims Avenue and Changi Road, offering the buyer flexibility in subdividing the site into two or more bite-sized phases or projects, with each sub-parcel being almost equally close to the MRT station.”
 
The minimum price of $688 million for Eunosville translates to approximately $806 psf per plot ratio (psf/pr) on the potential GFA, including estimated differential premiums of $163 million payable to top-up the lease to fresh 99 years and for intensification of use, subject to approval from the relevant authorities.

 

The tender for Eunosville closes at 2.30 pm on Tuesday, 14 January 2014. For further details regarding the property, please contact Karamjit Singh on +65 9681 0111.
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About Jones Lang LaSalle 
 
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialised real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 26, 700 employees operating in 80 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and won nine Asia Pacific awards in the Euromoney Real Estate Awards 2013. www.ap.joneslanglasalle.com 
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