Kensington Park condo launches S$1.28 billion collective sale tender
Kensington Park condo launches S$1.28 billion collective sale tender. The KENSINGTON Park condominium in Serangoon has been offered for en bloc sale by public tender with a guide price of S$1.28 billion, according to sole marketing agent CBRE (May 18).
The Business Times reported in April that at least 80% of the owners had agreed to the potential deal, nearly 4 years after their previous attempts at a billion-dollar price tag.
According to CBRE, the latest guide price equates to a land rate of approximately S$1,414 per square foot per plot ratio (psf ppr), after deducting the development charge (DC) of approximately S$178.1 million.
The land rate will be S$1,371 psf ppr after accounting for the 7% bonus gross floor area allowed for balconies and a DC payable of approximately S$232.1 million, according to the firm.
The site is zoned for residential use under the Urban Redevelopment Authority’s Master Plan 2019, with a gross plot ratio of 2.1 and a building height control of up to 24 storeys.
Kensington Park unit owners set a target of S$1.05 billion in 2018. However, on July 6, that year, a new round of property market restraints went into effect, slowing the collective-sale momentum. By July 25, 2018, the condo’s marketing agent had collected signatures from 70% of the owners.
The condominium was built in 1990 and is located at 2 to 12 Kensington Park Drive; the land it sits on has a 999-year tenure that began in 1878.
The sprawling rectangular plot of 491,000 square feet is nestled within the affluent, low-density Serangoon Gardens landed neighbourhood. According to CBRE, the 316-unit development has unobstructed views of the landed estate.
“We believe that developers will be able to achieve premium pricing even for low-floor units,” said Michael Tay, CBRE’s head of Singapore capital markets. He added that the site could be redeveloped into more than 1,000 residential units, subject to a pre-application feasibility study on traffic impact and Land Transport Authority approval.
Tay speculated that developers may choose to build larger and fewer units on the site to meet the increased demand for larger homes in the midst of hybrid working arrangements.
Given their location within a landed estate, strata-landed houses (similarly with upcoming development Lentor Modern) may also be popular with homebuyers, providing developers with an additional option to include such homes in the unit mix of the new development, he said.
Kensington Park is near The Garden Residences, a 613-unit condominium that opened in June 2018.
Chomp Chomp Food Centre is only 4 minutes away. Serangoon Garden Secondary School, the International French School, Zhonghua Primary School, Peicai Secondary School, and CHIJ Our Lady of Good Counsel are all nearby educational institutions.
Kensington Park’s tender will close on July 7, 2022, at 3 p.m.
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