Freehold Olina Lodge launched for collective sale at S$220m.
Owners of Olina Lodge, a freehold project at 15 Holland Hill in prime district 10, hope that third time's the charm in their collective sale attempt.
They have launched their properties collectively this time with a reserve price of S$220 million.
This translates to a land rate of S$1,631 per square foot per plot ratio (psf ppr.
If the developer chooses to build additional 10 per cent GFA for balconies, the land rate could be potentially pared down further to slightly below S$1,500 psf ppr.
There is potentially no development charge payable for redevelopment up to the gross plot ratio of 1.6 due to a high development baseline for the 7,830.7 sq m freehold site.
the land rate is in line with recent collective sale transactions within District 10.
These include Hollandia at S$1,703 psf ppr, Toho Mansion at S$1,805 psf ppr, Crystal Tower at S$1,840 psf ppr, City Towers at S$1,847 psf ppr and Royalville at S$1,960 psf ppr, inclusive of the 10 per cent bonus GFA for balconies.
The successful bidder could build an upscale 12-storey, 128-unit development with an average unit size of 1,000 sq ft, subject to approval from authorities.
So far this year, 14 collective sales clocked total proceeds of S$5.6 billion, which is already 64 per cent of the total proceeds of S$8.7 billion from 30 collective sale sites for the whole of last year.
A number of public tenders for collective sales have closed this year without any sale being concluded.
DBS Group Research property analysts said in a report that they see developers' landbanking appetite remaining strong, but will turn selective especially on the back of a pickup in the supply pipeline, estimated at about 30,000 units to be launched in 2018-2019.
Adapted from: The Business Times, 22 March 2018