Cavenagh Gardens up for en bloc sale

Cavenagh Gardens up for en bloc sale

Freehold District 9 site, Cavenagh Gardens has been put up for tender with an indicative price range of $460 million to $480 million, which translates to about $1,708 to $1,782 per square foot per plot ratio (psf ppr) - excluding balcony allowance - based on a gross plot ratio of 2.1 times or $1,553 to $1,620 psf ppr should the balcony allowance be factored in.

If the collective sale is successful, this would put an estimated $2.35 million to $2.96 million into the pocket of each unit owner.

The zoned residential site has an approximate land area of 128,256 square feet, which can yield a potential gross floor area of 269,338 sq ft based on the existing plot ratio.

However, with the possibilities of alienating adjoining parcels of state land, the total plot can be expanded to around 150,000 sq ft, yielding a gross floor area of 308,920 sq ft or more (if the development is granted the Green Mark GFA incentive or bonus balcony gross floor area).

If approved, the expected market price for the en bloc sale would translate to around $1,533 to $1,598 psf ppr (excluding balcony allowance) or $1,394 to $1,453 psf ppr (with balcony allowance) or lower if other incentives (such as the Green Mark GFA incentive) are approved.

Factoring in the impact of joining the existing parcel to surrounding state land, the estimated break-even costs for the development come in the range of $1,784 to $1,848 psf, with new units expected to hit the market at around $2,308 to $2,400 psf.

Without the state land, the estimated brepak-even costs would be higher at around $1,962 to $2,040 psf, with asking prices of new units expected to stay the same.

Source: Business Times – 10 April 2012