_Collective sale of Orchard Bel Air relaunched
Knight Frank Singapore, as the sole marketing agent, is pleased to announce the re-launch of the collective sale of Orchard Bel Air by public tender, offering developers an opportunity to acquire and develop a residential land site at one of Singapore’s most prestigious locations.
Located along Orchard Boulevard, Orchard Bel Air is an exclusive and coveted residential address short walk from Orchard Road. The site is situated right at the entrance of the newly opened Orchard Boulevard MRT station on the Thomson-East Coast Line. Strategically positioned next to the landed estate of One Tree Hill, luxurious new homes in the high-rise tower will offer residents unobstructed views overlooking Singapore’s premier shopping belt and central business district, with homes on the higher levels enjoying views that stretch all the way to the waterfront at Marina Bay.
The plot has a land area of 8,651.70 square metres (sqm) or approximately 93,126 square feet (sq ft), with a Gross Plot Ratio of 2.8 under the Master Plan 2019. It has the potential to be redeveloped up to its existing verified Gross Floor Area of 25,668 sqm or approximately 276,298 sq ft at a Gross Plot Ratio of 2.96. The development is on a 99-year leasehold tenure with effect from August 1980.
Orchard Bel Air falls within a corridor of properties along Orchard Boulevard where 36-storey developments are permitted under the Master Plan 2019. The sites located across the road from Orchard Bel Air have a height control limited to 20 storeys only.
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 located within its vicinity.
The guide price is S$587.5 million, which translates to a land rate of approximately S$2,620 per square foot per plot ratio (psf ppr) after factoring in an upgrading premium of approximately S$136 million for the lease top-up. Taking into consideration the 7% bonus gross floor area allowed for balconies, this translates to approximately S$2,551 psf ppr.
Ms Chia Mein Mein (谢敏敏), Head of Capital Markets (Land & Collective Sale), Knight Frank Singapore commented, “There is immediate and direct access from the site to the newly opened Orchard Boulevard MRT station. Its perfect location offers unobstructed panoramic views of the cityscape, making it one of the rare redevelopment sites available for sale in the land scarce Orchard location.”
“There may not be another residential redevelopment site available for sale within this prestigious enclave in the near future. Especially in the current climate, as owners’ concerns on replacement costs make it challenging to secure a mandate in any enbloc process.”
The coveted Orchard Boulevard location is where record land rates have historically been set. The former Westwood Apartments, now redeveloped as 3 Orchard-By-The Park, achieved Singapore’s highest land rate of S$2,525 psf ppr when it was sold in 2007. A few doors away, Park House, currently being redeveloped as Park Nova, breached a new record land rate of S$2,910 psf ppr when it was sold in 2018.
With the opening of international borders, the demand for luxury residences in Singapore started to gain traction. Sales momentum has been positive at the nearby Park Nova, with 9 units transacted since the third quarter of 2022 at around S$4,400 to S$4,900 per sq ft, with the project achieving approximately 87% sales. A 2,799 sq ft unit at Boulevard 88 along Orchard Boulevard was sold for S$13.78 million or S$4,924 per sq ft in December 2022. Les Maisons Nassim continued to achieve top dollar, with four sale transactions registering prices between S$36 million and S$68 million, or S$5,296 per sq ft to S$6,057 per sq ft in recent months. The development is now approximately 79% sold.
Chia further shared, “With an anticipated further pickup in demand from foreign homebuyers with the re-opening of China’s borders, the high-end residential market, which has not experienced as much price growth in the last two years when compared to suburban homes, stands at the brink to benefit from the flight of private wealth to the safe haven sanctuary that Singapore represents. Especially so, for family-sized luxury homes in the heart of Orchard Road.”
The tender will close at 3pm on 1 March 2023.
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