_Orchard Bel Air is up for sale by tender at S$587.5 Million
Singapore, 27 July 2022 – Knight Frank Singapore, as the sole marketing agent, is pleased to announce the launch of the collective sale of Orchard Bel Air by public tender at a sale price of S$587.5 million.
The exclusive residential site has a land area of 8,651.70 square metre (sqm) or approximately 93,126 square feet (sq ft). Under the Master Plan 2019, the site has a Gross Plot Ratio of 2.8 and a building height control of up to 36 storeys. It has the potential to be redeveloped into a high-end luxurious residential development up to its existing verified Gross Floor Area of 25,668 sqm or approximately 276,298 sq ft, based on a Gross Plot Ratio of 2.96. The development is on a 99-year leasehold tenure with effect from August 1980.
The guide price of S$587.5 million translates to a land rate of approximately S$2,600 per square foot per plot ratio (psf ppr) after factoring in an upgrading premium of approximately S$131 million for the lease top-up. No development charge is payable. Taking into consideration the 7% bonus gross floor area allowed for balconies, this translates to approximately S$2,526 psf ppr.
Orchard Bel Air is unique in that it falls within a corridor of properties along Orchard Boulevard onto which 36-storey developments may be permitted under the Master Plan 2019. Most of the other sites located across the road from Orchard Bel Air have a height control of only up to 20 storeys.
An estimated 128 new residential units of average 200 sqm size could be developed, depending on layout and configuration, and subject to approval from the relevant authorities. The redevelopment would not require a Pre-Application Feasibility Study (PAFS) on traffic impact.
Built in 1984, Orchard Bel Air comprises 71 residential units across 25 storeys. High-end residential developments, hotels, offices and shopping malls, including Tanglin Mall, ION Orchard and The Forum are within its vicinity.
Mr Baldev Singh, Chairman of the Orchard Bel Air Collective Sale Committee, said, “Although we have attempted to initiate the collective sale exercise in the past, this is the first time we have managed to secure the 80% consensus mandate to launch the tender.”
The apartment owners, whose sizes range from 300 to 303 sqm, stand to receive minimum gross prices of approximately S$8.1 million, while the penthouse owner with a unit size of 605 sqm could walk away with at least S$16.3 million from the successful sale of the development.
Ms Chia Mein Mein (谢敏敏), Head of Capital Markets (Land & Collective Sale), Knight Frank Singapore commented, “Orchard Bel Air embodies all the qualities of a trophy asset. Befitting of an iconic development, it carries the prestige of an Orchard Boulevard address, boasts unparalleled convenience with the Orchard Boulevard MRT station right at its doorstep and offers a luxurious living experience nestled within a quiet and upscale residential enclave.
“Perfectly positioned next to the landed estate of One Tree Hill, the successful bidder can look forward to creating an iconic and ultra-luxurious landmark development with new homes soaring above the neighbouring developments with unobstructed views of the cityscape.”
Redevelopment sites in the Orchard vicinity are few and hard to come by. The last successful large scale en bloc sale in the Orchard Boulevard vicinity was Park House, located just across the road from Orchard Bel Air, which was sold for S$375.5 million or S$2,910 psf ppr in June 2018. The new development on the former Park House site, Park Nova, has achieved a strong take up rate of approximately 69% with 37 out of 54 units sold since its launch a year ago, with prices fetching an estimated S$4,970 psf on average, according to caveats lodged.
The demand for luxury residences in Singapore has steadily grown as witnessed by the handful of notable transactions since last year. For example, Eden at 2 Draycott Park sold out all 20 units in March 2021 for S$293 million, at an estimated S$4,827 psf on average. A unit at Les Maisons Nassim achieved a record price of approximately S$37 million or S$5,461 psf in April 2022, while a resale unit at The Nassim registered a record price of S$20 million or S$4,915 psf in May 2022.
Since the relaxation of COVID-19 measures and the opening of Singapore’s borders in April 2022, the high-end segment had received a boost in foreign interest. It was reported in June 2022 that a stack of 22 apartments at Draycott Eight was undergoing exclusive due diligence by an Indonesian family, at a sale price of nearly S$168 million, estimated at $2,570 psf on strata area. Separately, a Chinese buyer had also purchased 20 apartments at CanningHill Piers, for more than S$85 million in the very same month.
Ms Chia further shared, “Singapore has already witnessed some increase in foreign buying interest with international borders opening this year. We anticipate a further pickup in demand, particularly in the high-end residential market, which has not experienced as much price growth in the last two years when compared to suburban homes.”
“As cross-border travel increases to pre-pandemic levels and Singapore continues its strong standing among the affluent, a flight-to-safety might ensue among the globally mobile wealthy. Given some of the current tensions in other parts of the region and the world, Singapore offers private wealth a stable and secure haven. With Orchard Bel Air presenting this rare opportunity, we are expecting strong interest from both local and overseas developers.”
The collective sale tender for Orchard Bel Air will close at 3pm on 6 September 2022.