SINGAPORE: Former HUDC estate Serangoon Ville has been sold for S$499 million to joint venture company Oxley Serangoon, announced construction and property development company KSH Holdings on Wednesday (Jul 26).
To develop the site, the buyers intend to apply to top up the lease to a fresh 99 years, at an additional estimated differential premium of S$195 million that is payable to the state.
Owners of the estate, which was privatised in 2014, were expecting offers in the range of S$400 million to S$430 million for the property. The estate has 69 years left on its lease.
According to marketing agent ERA Realty, the sales price and additional charges work out to a rate of S$835 per square foot per plot ratio. Each unit will get around S$2 million upon completion.
If successful, this will be the sixth en bloc transaction this year, doubling the number of sales in 2016.
“This serves as yet another indication that developers are of the view that the property market’s down cycle is almost over," said ERA's Key Executive Officer Eugene Lim.
Serangoon Ville, which is located at Serangoon North Avenue 1, comprises 244 units in three blocks of 13-storey and four blocks of four-storey walk-up apartments. It is near schools such as Maris Stella High School, Rosyth Primary School and St Andrew's Junior School. Nearby amenities include NEX shopping mall and Chomp Chomp food centre.