Royalville back with lower en bloc price tag

April 8, 2008
Royalville back with lower en bloc price tag
New asking price of $1,106 psf per plot ratio is 10-15% less than
before
By KALPANA RASHIWALA

ANOTHER en bloc sale property is back on the market with a lower
asking price.

Royalville in Bukit Timah, off Sixth Avenue, has been relaunched -
this time with a 10-15 per cent lower asking price than in October
last year.

However, the property is still being launched based on last year's
collective sale agreement signed under the old rules and the reserve
price is believed to be the same.

Last year, Royalville's asking price was $330-350 million, which
worked out to $1,235 to $1,305 per square foot (psf) of potential
gross floor area, including development charges (DC) at the time.

This time, the 174,176 sq ft freehold Royalville site is being
packaged with an 8,420 sq ft adjoining drainage reserve being sold by
the Official Receiver.

The two properties, which are being marketed by Credo Real Estate,
have a combined asking price of about $305 million.

This reflects a unit land price of $1,106 psf per plot ratio
inclusive of $6 million DC for the two sites.

The site can be developed into a new condominium with about 140 units
of an average size of 2,000 sq ft each.

Based on a land price of $1,106 psf ppr, the breakeven cost for a new
condo on the site should be about $1,700 psf, Credo said.

'New residential developments nearby such as Duchess Residences are
transacting in the price range of above $2,000 psf,' it added.

Last week, Jones Lang LaSalle relaunched Pinetree Condominium located
in the Balmoral area at an indicative price of about $1,700 psf ppr,
about 20 per cent lower than the previous indicative price of $2,100
psf ppr seven months ago.

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