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Wednesday, April 11, 2012

Cavenagh Road condo in S'pore up for sale again

SINGAPORE: A freehold condominium right next to the Istana is up for collective sale at an asking price nearly S$200mil under the level the owners aimed for in 2007.

Back then, the Cavenagh Gardens owners asked for S$650mil but failed to get a buyer. They lowered it to S$490mil and still struck out amid the financial crisis.

They have again lowered their expectations, this time with an asking price of S$460mil or S$1,394 per sq ft for the 172-unit block in Cavenagh Road.

That price would give owners between S$2.35mil and S$2.96mil each for their apartments.

The estate's buyers could possibly acquire adjoining parcels of state land which would bring the total site to about 150,000 sq ft.

The potential gross floor area could then reach 310,000 sq ft or more.

Charles Chua, head of investment sales at PropNex, the marketing agent, told The Straits Times on Monday that the improving economy and recent successful suburban collective deals had encouraged the Cavenagh Gardens owners.

“We are predicting that with the influx of foreign investors and the interest of high-end home buyers, this land site has a plethora of opportunities to be developed into high-end residences, serviced apartments or Soho (small office and home office) apartments,” he said.

Colin Tan, research head at Chesterton Suntec International, said: “The main issue for launching such a big tender is whether developers can see and avoid more risks ahead. Currently there are more developers than sites available.”

He added that given Cavenagh Gardens' prime location and price tag, developers could consider forming a joint venture in order to mitigate the risks.

The consideration of a joint venture was also echoed by Nicholas Mak, SLP International's head of research.

He also noted that height restriction imposed on buildings around the Istana due to security reasons would be a limiting factor for developers.

By Straits Times

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