The sole marketing agent, JLL, says that two adjoining projects on Sophia Road in the heart of District 9 have been put up for sale. Fairhaven is located at 130 Sophia Road while Sophia Ville is located at 128 Sophia Road.
Two properties are expected to cost more than $64 million and have a price per square foot (ppr) of more than $1,279. That’s after taking into account the 7 percent bonus balcony space. There is no development charge because there is already a lot of development in the area.
Most of the owners of Fairhaven and Sophia Ville have agreed to work together to sell the land to one company. Over 80% of the owners in each development have agreed to the sale.
Putting Fairhaven and Sophia Ville up for sale as a group would cost more than $64 million, or $1,279 psf ppr.
Potential of the new site
“We think this collaboration is good for both the owners and the people who want to buy their homes.” If they were to sell on their own, they would be able to get more money than if they did it this way. Offer: “For developers, this gives them more flexibility and scale to build a high-end project,” says JLL’s Yong Choon Fah. “It is ideal for family offices to build a small boutique project for long-term rental income.”
It has a lot more space than Sophia Ville. Fairhaven has a lot more space than Sophia Ville. Each site has a gross plot ratio of 2.1 under the city’s 2019 Master Plan. There could be a total gross floor area of 53,541 sq ft on the combined site. This includes a possible 7 percent bonus balcony area.
Both of these projects are in the middle of the city, which means that the future development will be able to have more flexibility in terms of unit sizes, subject to approvals. Besides that, the properties are also close to the MRT station at Dhoby Ghaut and to the Orchard Road shopping area. Anglo-Chinese School (Junior) and St Margaret’s Primary School are two of the most popular schools near the site. They are both less than a mile away.
Other schools in the area are the Singapore Management University, Lasalle College of the Arts, Nanyang Academy of Fine Arts, and the School of the Arts, which are all near each other.
Residential land is in high demand
Developers are looking for places to build homes because of how quickly private homes are selling, says C&W’s Poh. This is true at least for the next six to 12 months. Poh: Developers who have bought collective sale sites in the past have seen how even one person who doesn’t want to buy can change the timing for a new project to start. That’s why people prefer single-owner sites or those where all the owners agree, he says.
It says that “Government land sale (GLS) sites are the first place to look.” There will be a lot of people bidding for these kinds of places. The GLS site isn’t the only option. You can also go to private sites, like those for collective sales. If you’re selling things in a group, one problem is that owners usually set the reserve price for each item at a higher price than the market is now, he says.
“I don’t think there will be a mad rush, and I don’t think there will be an en bloc sale fever,” says Lake, a Savills agent. “I don’t expect to see a wave like we did from 2016 to the first half of 2018. I do, however, expect to see more group sales in 2021 and 2022.”