Third En Bloc Attempt For D'Grove Villas
The freehold high-rise condominium is back on the market for the third time with a higher asking price of S$420 million (from S$398 million in 2019).
The current guide price of S$420 million works out to a land rate of around S$3,099 per square foot per plot ratio (psf ppr). This includes an estimated land betterment charge of around S$4.35 million to maximise the current plot ratio on the site.
Owners are expected to pocket between S$6 million and S$16 million, depending on the size of their unit, said joint marketing agents List Sotheby’s International Realty and Strata AMC.
The 20-storey development houses 45 large units, ranging from three-bedroom units of 1,690 square feet (sq ft) each, and four-bedroom units of 2,443 sq ft or 2,702 sq ft, to two penthouses spanning 5,221 sq ft each.
The prime District 10 condo was first launched for collective sale in March 2019 at an asking price of S$398 million. It was relaunched at a slightly lower price of S$392 million later in September, with the tender closing again without a deal.
Built in 1992, D’Grove Villas sits on a plot of around 50,400 sq ft with a maximum gross floor area of 141,121 sq ft. Its location along Orange Grove Road near the Shangri-la Hotel is a stone’s throw from Singapore’s prime shopping belt Orchard Road and near the exclusive Ardmore Park estate in the Tanglin area.
Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned for residential use with a gross plot ratio of 2.8.
The marketing agents expect the plot to draw strong interest this time from developers and investors alike.
“The first attempt in 2019 was unsuccessful because of weakening sentiment in the property market due to the cooling measures introduced in July 2018,” said Bern Chen, executive director of Strata AMC, representing the joint marketing agents. “Developers were wary of the risks involved in acquiring collective sale sites as the government had raised the Additional Buyer’s Stamp Duty (payable on land acquisitions) from 15 per cent to 25 per cent (plus another 5 per cent which is non-remittable).”
Why We Think It is Unlikely To Go Through Again
As already mentioned, the market is quiet and developers are cautious. Currently, foreigners are also mostly absent from the luxury property market due to the high 60% ABSD rate.
If this collective sale does make it through, it could be launched at more than S$4,300 psf, which we feel would not appeal to most local buyers. Furthermore, there is lesser competition for Government Land Sales (GLS) tenders and developers tend to prefer a straightforward and predictable process so that they can launch the development for sale quickly.