En bloc news: Shunfu Ville

By The Folks @PropTalk - September 3, 2015 No Comments

Shunfu Ville, a privatised former HUDC estate on Marymount Road, launched its collective sale by tender on September 3, confirming a report by The Business Times in July.

Owners of the 358-unit residential development in the popular Bishan/Thomson area are said to be expecting offers in excess of $688 million minimum price, according to JLL, which has been appointed as the sole marketing agent.

The estate comprises three 16-storey apartment blocks and three low-rise blocks of six-storey maisonettes. Sitting on a prime plot of about 408,927sqft   and zoned "residential" with a gross plot ratio (GPR) of 2.8 under the Master Plan 2014, the site could potentially yield about 1,100 plus units with an average size of 1,000sqft.

Tan Hong Boon, regional director of JLL's capital markets, added that the new project could likely be the tallest residential development within its one-kilometre radius, as the Master Plan provides for a building height of up to 36 storeys.

Mr Tan said the minimum price translates to a land rate of about $791psf ppr on the potential GFA, after adding an estimated differential premium of $218 million payable to the state to top up the lease to a fresh 99 years and for intensification of use, subject to approval from the relevant authorities.

"At this rate, the estimated breakeven cost for the successful purchaser should be around S$1,250 psf, with the new units expected to fetch between $1,400psf and $1,450psf. At the minimum price of $688 million, owners can look forward to receiving gross sales proceeds of at least $1.9 million per unit, or about 50% more than what they could obtain by selling their units individually," he said.
Source: BT

It was not that long ago when Shunfu Ville had gotten itself privatized (more precisely, in 2013) but even at that time, owners were already targeting the estate for en bloc. So looked like it is finally happening. Only questions that remain are whether developer will bite and at what price. But the wife and I have always like the actual site, with its proximity to Shunfu market and food centre and especially Marymount MRT Station, which is like a stone throw away. So here's wishing them luck on the "in excess of $688 mil"!

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