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News Release

Singapore

En bloc tender exercise launched for The Albracca at Meyer Road


SINGAPORE, 13 JUNE 2017 – The Albracca, a 10-storey residential development along Meyer Road, has just been put up for sale by tender by sole marketing agent JLL. This is the first time that the property is being offered for sale collectively. 


The Albracca, with the address of ‘1 Meyer Place’, is an 11-unit strata-titled development located at a prominent corner of Meyer Road and Meyer Place. More than 80 per cent of the owners have inked their consent to collectively sell their property. The launch of this tender exercise comes shortly after four collective sales were successfully concluded last month, surpassing the total number of en bloc deals done in the whole of 2016.


"These are classic signs of a brewing en bloc sale cycle, which started last year, expected to grow in activity this year, and possibly mature in 2018. Activity is picking up pace with the positive turning of the outlook of the residential market,” says Mr Karamjit Singh, Senior Consultant at JLL. 


He adds: “En bloc sales takes place in waves before going away for periods of lull that can last three to five years. On the supply side, quite a number of ageing developments who missed out on selling during the last wave in 2010 to 2013 are now keen to restart.”


The Meyer Road area has always appealed to well-heeled and high-income homebuyers as it has traditionally been considered as arguably the most prime location outside the Core Central Region with a strong following amongst both local and expatriate communities.


“It is not often that a site on Meyer Road is made available for sale. The main supply of sites in this area typically arises from a collective sale of the older developments,” says Mr Singh. 


“Further, what makes The Albracca site even more compelling is the location of the upcoming Katong Park MRT Station right at its doorstep. This station is part of the Thomson-East Coast line slated to be ready some time in 2023. As part of the MRT plan, Katong Park station would be only 5 stops away from Raffles Place and Shenton Way. Aside from MRT connectivity, residents may also cycle to work in the CBD via the cycling track at the beach, as Singapore transitions into a car-light society.”


“When redeveloped into a high-rise tower, the development should offer stunning and unobstructed views across the greenery of Katong Park and that of the sea beyond the park. Such views are highly sought after as a key selling point amongst projects. Unlike other Meyer Road condominiums that front the East Coast Parkway (ECP), The Albracca is situated on the opposite side of the road where it is setback away from the noise of the ECP, thereby offering the brilliant views but without the persistent hum of cars on the busy expressway.”


Under the 2014 Master Plan, the 23,400 sq ft site is zoned ‘Residential’ with an allowable gross plot ratio of 2.1. The Albracca may be redeveloped to accommodate a high-rise apartment development of about 18 to 24 storeys, depending on the technical height controls imposed by some government departments.


Subject to design and approval from the Urban Redevelopment Authority (URA), a developer may potentially configure the allowable gross floor area (GFA) of 49,130 sq ft into a maximum of 65 apartments with an average size of 70 sqm. 


The owners of The Albracca are hoping to achieve a sale price in the vicinity of $62 to $65 million. An application for the development baseline has been submitted to URA to establish the amount of development charges (DC) payable upon redevelopment, if at all. If it is found that DC is not payable, the guide price range of $62 million to $65 million works out to $1,262 to $1,323 psf ppr.

 

“We expect this site to be well-received by developers, especially in light of the bullish bidding seen at recent land tenders. This property has all the right attributes – a prime and well-connected location, excellent views, and a low price quantum and project scale that makes it appealing to a wide pool of developers,” says Mr Singh. 


The tender for The Albracca closes on Thursday, 20 July 2017 at 2.30 pm.