Developer Qingjian Realty had intended to begin construction of its 105-unit privately-owned residential condominium The Arden in 1Q2022. The sales gallery located on the site located on Phoenix Road was completed early this year. But, as the year comes to an end, the events for the launch have yet be put into motion. Yen Chong the deputy general manager of Qingjian Realty confirms that the launch was delayed.
The Hill @One-North at Slim Barracks Rise is a perfect home for people looking for an oasis away from the fast-paced city life.
The reason for the delay is the approval to purchase of three adjacent remaining State land parcels located at Phoenix Road. “It is awaiting the approval of the authorities,” says Chong. “We are hoping to be granted it shortly.”
If contacted through EdgeProp Singapore, an Singapore Land Authorities (SLA) spokesperson would reply: “SLA is reviewing the request with the relevant agencies and will release the proposal as soon as it is possible.”
The amalgamation of remnant State properties with Private properties is not a new idea. Indeed, developers are encouraged to purchase these abandoned sites for an even-shape parcel.
Qingjian Realty purchased the former Phoenix Heights en bloc for $42.6 million at the time of the closing to the auction on the 25th of July 2019. The developer is also proceeding with the purchase of three remaining State land parcels that border the site.
The delay is due to the complexity of purchasing three remaining sites
The third of three remaining sites is a small piece of land that forms the boundary that forms part of the site on Choa Chu Kang Road. It is believed to be home to the reserve for drainage. The two remaining sites are located at the rear of the property and a rectangular site is believed to be home to an underground power station, while the second smaller square site is where the gas pipes that were used to service the units that were once part at Phoenix Heights are located (see EdgeProp Landlens).
A previous written authorization (WP) sent by URA on November 20, 2021 indicated that it was in the process of obtaining the abolition of two State land parcels located in lots MO10-01494M and the MK10-01654C.
Based on the revised WP which was submitted on March 1st 2022. The 105 unit residence development will consist of three blocks of five stories and will include an underground carpark, a swimming pool , and common facilities situated in Plot 1, which is the principal site.
The developer must grant Public Utilities Board (PUB) access to the drainage reserve located at Plot 2, “without the State paying any money or offering any kind of consideration to the developer, with vacant possession and without any encumbrances prior the issue an official Certificate of Completion Statutory from the Building and Construction Authority”.
As per the terms of the WP The developer must meet requirements of the “requirements from technical authorities” which include those of the Land Transport Authority (LTA), National Parks Board (NParks) and PUB.
According to reports, a further problem could be caused by the owner of the remaining site which includes an electrical substation. The site is in the possession by Singapore Power, which is now a corporatised company. The land needs to be returned to SLA.
So, at present it is the only one of the three remaining sites was successfully amalgamated. It is the one that has the gas pipes that were unused and had previously served the 12 shops in the Phoenix Heights. Phoenix Heights.
“While it is normal to have several agencies involved in the acquisition of remnant sites It is unusual for approval to take this long,” says a source who refuses to identify himself. “Perhaps it’s the acquisition of three remaining lots, instead of just one that’s causing the complexityand slow approval process for this purchase SLA because it must work with all the different agencies.”
In the event that Qingjian had filed the request for the purchase of the three remaining sites before September 1st, 2022, the price of the purchase will be determined by the prior price that was 50% of the total land value, calculated by applying a multiplier equal to 5/7 of the rate of land betterment as stated by SLA in the press release. Since Sept. 1, the acquisitions of remaining State property will be determined by 100% of the value of the land site.
The land rate of Arden’s – similar with GLS sites for ECs in the present
The debut The Arden The Arden is expected to be sometime in 2023, which is a year further back than the developer originally planned. In the meantime, the clock is ticking toward the deadline of 5 1/2 years for the cancellation from the 35% additional stamp duty for buyers. The case for Qingjian Realty, that date is believed to be the close of January 2025. This means that the developer has approximately two years for the sale of the 105 units of residential homes in The Arden.
In addition to the extension of six months for the sale period for 5 1/2 years time to complete the project is delayed by 12 month, to November 2025, in the context in the relief provisions of COV-19 to developers.
In retrospect the Qingjian Realty’s price for the site located on Phoenix Road is attractive compared to the prices for land on Government land sales (GLS) sites today. The 63,000 square feet site is leased for 99 years that began in 1969. That means that the developer is required to pay a difference premium to cover leasing top-up. The purchase price is $42.6 million, which amounts to an estimated $630 per plot ratio (psf ppr).
It amounts to 38.5% below the $1,024 per sq ft price per square foot the Far East Organization and Sekisui House paid for the GLS site at Hillview Rise at the close of the tender on November 3. The $630 price per and ppr is 53% less than the $1,343 per person the Bukit Sembawang Estates offered for this GLS site in the Bukit Timah Link, which is located near the entry point into Beauty World MRT Station. Tenders for Bukit Timah Link was also shut on November 3rd.
The $630 psf per-psf rate is the same as the cost for GLS sites in executive condo (EC) developments sites in the present, says Lee Sze Teck, senior director of research at Huttons Asia. In the middle of September, City Developments Ltd (CDL) paid $626 psf per month to purchase the EC site located at Bukit Batok West Avenue and Qingjian Realty paid $662 psf per person to purchase the EC site located at Bukit Batok West Avenue 8 , in the month of March of this year.
What price will The Arden be priced at?
EC projects announced in this year have already had sales that have surpassed $1,300 per square foot. For example there were 639 apartments in the Copen Grand in Tengah Garden Walk which was launched with CDL as well as MCL Land in September, has seen the sale of 485 units (75.9%) sold to the date, at an average of $1,337 per sq ft. CDL as well as MCL Land had paid $603.17 per sq ft per site by May 20, 2021.
In the meantime, the consortium comprising Qingjian Realty, Santarli Realty and Heeton Holdings is launching the 618-unit Tenet EC at Tampines North on the 3rd of December. The average indicative price is set at $1,331 per sq ft. A consortium led by Qingjian Realty paid $659 per square foot to purchase the EC site located in Tampines North, in the month of July.
Suburban 99-year leasehold condominiums were launched in the last year at an average price of just $2100 psf. Some examples include Amo Residence in Ang Mo Kio Rise in July which saw the 98% (372) units sold within the first weekend following the debut; Sky Eden@Bedok, with 75% of the 158 units sold in the beginning of September and Lentor Modern with the 85% of units were sold as of November 21.
“Qingjian Realty paid $730 per per square foot for the site and it’s the most appealing land price currently – and they can cause an uproar within the marketplace by the launch of The Arden for sale at a cost that is in between the fresh launches for ECs as well as suburban condominiums. This will draw a lot of attention,” says Huttons Asia’s Lee.
Nearby The Arden The Arden is Hillsta, which is a 416-unit leasehold development that consists of Soho’s, condominiums and townhouses. It was designed through Far East Organization, the project was completed in the year 2012. The latest median price for Hillsta is $1,241 per sq ft which is based on transactions between June through November 2022.
Further down Phoenix Road and separated from The Arden by the Phoenix Park playground is the Phoenix Residences, a 74-unit development. Phoenix Residences by OKP Holdings. The project was officially launched in December 2020. around 95% (70 apartments) of the development has been sold at an average cost of $1,554 per square foot. Based on caveats that were lodged between June and November of 2022. cost is $1,626 per sq ft.