SINGAPORE, 16 March 2018 – Katong Park Towers, located in the exclusive residential enclave of Arthur Road and Meyer Road, has been sold to a unit of Bukit Sembawang Estates Limited. Cushman & Wakefield, who brokered the deal, said that the sale price was some 20% above the reserve price of $288 million. The tender attracted a total of 10 bids and all were above the reserve price.
Located approximately 200 metres from the future Katong Park MRT Station, which is slated for completion in 2023, Katong Park Towers is a prime 99-year leasehold residential site comprising a land area of 13,076.9 sq m (140,758 sq ft). The location is also just 10 minutes away from the Marina Bay Financial Centre. The current development comprises 111 units’ typical apartments, 5 penthouses and 2 commercial units. According to Singapore’s 2014 Master Plan, the site is zoned “Residential” with a plot ratio of 2.1 and a maximum building height of up to 24 storeys. The site is not affected by any traffic impact study.
The recent increase in development charges in this precinct has minimal impact on the price as Katong Park Towers has a fairly high baseline. At the sale price of $345 million, the land rate for Katong Park Towers translates to $1,280 per sq ft per plot up to the development baseline, taking into account an estimated $60 million for the lease upgrading premium.
According to Ms Christina Sim, Director of Capital Markets at Cushman & Wakefield, Owners at Katong Park Towers will receive proceeds ranging from $2.25 million to $3.23 million for the typical units depending on their floor area and size. The 5 penthouses will receive proceeds ranging from $4.95 million to $12.08 million. These premiums are fairly substantial, compared to units which were sold individually in the open market. This part of the East Coast is also an affluent and well-heeled neighbourhood within the charming heritage town of Katong. It is also just 5 minutes away from the state of the art Singapore Sports Hub and the Kallang Riverside Park which boasts of a leisurely waterfront park for the community.
Mr Ng Chee Seng, CEO of Bukit Sembawang Estates Limited said: “We are pleased to be awarded this coveted residential address in a prime district. Our planned development is nestled in low-rise landed houses along Meyer & Mountbatten Road, and will offer rare, unobstructed panoramic views of the city skyline. We see good potential in this site because it is well-connected to the future Katong Park MRT Station. With Katong’s rich heritage and rejuvenation initiatives under the Kallang Masterplan, we are confident that this will be another quality development added to our portfolio.”
The sale is subject to approval from the Strata Titles Board.
For further information, please contact:
Director, Capital Markets
+65 6317 8333 / +65 9638 8813
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.