Former HUDC estate in Eunos for sales

 A HUDC estate in Eunos that has been privatised has put up on the market, days after a comparable estate in Hougang was put on sale.

Proprietors at Eunosville in Sims Avenue expect offers of between $643 million and $653 million, which makes a transaction of about $780 to $790 psf per plot ratio (psf ppr).

That could make the 330-unit Eunosville the biggest collective sale as of late, outperforming the $638 million paid for Shunfu Ville a year ago, marketing consultant OrangeTee yesterday. It would likewise overshadow Rio Casa in Hougang, which went at a sale with expectations of more than $450.8 million, or about $586 psf ppr.

The asking price for Eunosville includes a top-up premium of about $181 million for another 99-year lease and for intensification of the 376,713 sq ft site, which is within 100m from the Eunos MRT station.

Eunosville owners, who achieved the imperative 80 percent consent is required for the collective sale within four months, each would get around $1.9 million to simply over $2 million.

The estate, which has 70 years lease left, comprises of 225 maisonettes in 10 blocks and 4 blocks of 75 walk up apartments. The strata floor area for a maisonette is in the vicinity of 156 and 165 sq m (1,679 to 1,776 sq ft), and apartment sizes are from 152 to 160 sq m.

A redevelopment could yield around 1,035 units, with a average size of 90 sq m each.

The expected selling price would be in the region of $1,450 psf for another apartment suite with a breakeven level of about $1,250 psf, said Mr Alex Oh, OrangeTee’s director of business solutions

Mr Marcus Oh, OrangeTee’s executive director of business solutions, stated: “The current change to the cooling measures has infused some confidence into the private market… Strong sales results at recent launches such as Grandeur Park Residences… show buyers are still keen to invest in projects with strong locational attributes, for example, vicinity to MRT stations.”

420 units at Grandeur Park Residences were sold within the first weekend of launch at a reported average price of $1,350 psf.

While developers see the en bloc process as a viable source of sites in good locations, their bids will be realistic, given building completion and sales deadlines imposed by the qualifying certificate and additional buyer’s stamp duty.

Mr Ong Kah Seng, chief of R’ST Research, stated: “Developers and sellers are practical in selling prices, and not profiting by enhanced buying sentiment.

“Developers seem to be keen on collective sales recently because they are running low in land stock… they will need land for development or at least have some sites… to reflect longer-term corporate and business objectives.”

Eunosville was privatised in 2011 and had its second en-bloc attempt in 2013. The first bid not successful after it was hit by new rules governing home loans.

The tender for Eunosville closes at 3pm on May 31.