PUBLISHED on 2nd August 2018, 5:50am
Brookvale Park, a 160-unit development in Sunset Way, has been sold to Hoi Hup Sunway, a joint venture between Hoi Hup Realty and Sunway Developments, for $530 million. This marks the fourth collective sale sealed under private treaty this week, after their public tenders had earlier closed without a sale being concluded.
The latest deal also represents the largest investment by Hoi Hup and Sunway Developments in their 11 years of partnership, said Hoi Hup Realty chairman Wong Swee Chun.
“The sprawling 999-year leasehold land is in a centralyet lush setting. We believe this provides a great opportunity to create a unique residential product,” he said.
The sale price of $530 million reflects a land rate of about $932 per sq ft per plot ratio, after factoring in an estimated development charge of about $26 million.
At this sale price, the owners would expect to receive gross sales proceeds of between $2.5 million and $4.4 million per unit, said the sole marketing agent JLL.
Over 80 per cent of the owners have consented to the sale, which is subject to several conditions being met, including an order of sale by the Strata Titles Board and the court, where applicable.
“New units of the proposed development could potentially enjoy unblocked views over the landed housing estate and greenery,” said JLL regional director Tan Hong Boon.
The sale of Brookvale Park brings the tally of collective sales in the year to date to $3.14 billion, arising from eight deals. Last year, 30 collective sales worth $8.7 billion were concluded.
“Our view is that the market is on track for last year’s tally to be surpassed by the middle of 2018, as the strong momentum driven by the positive outlook of the residential market sustains,” said JLL senior consultant Karamjit Singh.
Under the 2014 Master Plan, the 373,008 sq ft residential site has a gross plot ratio of 1.6, which means the site may be redeveloped into a condominium development with a total gross floor area of about 656,494 sq ft, including a 10 per cent bonus balcony area.
It is located within the Sunset Way enclave designated for two-storey bungalows and private residential developments.
The site is a short drive away from Holland Village and Bukit Timah Nature Reserve, and near reputable tertiary and international education institutions such as Ngee Ann Polytechnic, Singapore Polytechnic, National University of Singapore, Singapore University of Social Sciences and Canadian International School.