This article was first published on PropertyGuru
The former Housing and Urban Development Company (HUDC) estate of Serangoon Ville has been sold in a collective sale to an Oxley Holdings-led consortium for $499 million, following the close of the tender exercise on 25 July. Each owner will get about $2 million.
HUDC flats were built in the 1970s and 1980s as a housing option for the sandwiched class of Singaporeans who can afford something better than the typical public housing, but yet find private housing unaffordable. The Housing Development Board phased out the building of HUDC flats in 1987 as their demand declined.
The sale exceeds the expected offers of $400 million to $430 million. Located along Serangoon North Avenue 1, the estate sits on a 296,913 sq ft site and has a plot ratio of 2.8.
Privatised in 2014 and with 69 years left on its lease, Serangoon Ville comprises 244 apartments and maisonettes spread across seven blocks.
The sale price, on top of an estimated differential premium of $195 million to top-up the lease to a fresh 99 years and intensify the site, works out to a land rate of $835 psf per plot ratio, said Stanley Koo, Division Director at ERA Realty Network, which brokered the sale.
Eugene Lim, ERA’s Key Executive Officer, said: “This serves as yet another indication that developers are of the view that the property market’s down cycle is almost over.”
He noted that strong sales seen at the nearby Hundred Palms Residences executive condominium along Yio Chu Kang Road would have given developers more confidence in the tender of Serangoon Ville.
Story: Romesh Navaratnarajah via PropertyGuru. Additional reporting by Coconuts Singapore
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