The Meyer Place hits the market

Sale expected to open the floodgates for collective sales in desirable east coast area

05:55 AM Sep 24, 2009

by Esther Fung esther@mediacorp.com.sg

THE collective sale property market fervour has now moved beyond the mass market segment and into the high-end luxury market. The latest en-bloc site to hit the market yesterday was The Meyer Place, located in up-market Meyer Road in the East Coast area, a favourite among expatriates here.

The Meyer Place currently holds 28 units in a seafront location on a freehold land area of 28,167 square feet (sq ft). Cushman & Wakefield, the marketing agent for the sale, believes that with the recovering economy, residents can expect to collect between $2.2 million and $2.4 million per unit.

Although the land site is much smaller than what another East Coast seafront condo offered for en-bloc sale earlier this month, Laguna Park, it is expected to be hotly contested among developers as it has a smaller price tag and the potential to attract high-end clientele, analysts said.

The en-bloc sale of The Meyer Place is also expected to open the floodgates for more collective sales in the area. A market observer said there is talk that residents in nearby Meyer Park, Amber Park and Kings Mansion may also be in the process of collecting signatures for an en-bloc deal.

Other residents living in condos in the vicinity are also reported to be keen on a collective sale for their apartments.

A resident at Peach Garden condominium, just 1 km away from The Meyer Place, told Today "Most of us would like to. It depends on the right timing and offer price."

According to Cushman & Wakefield, the District 15 site is expected to fetch $65 million.

Based on a 2.1 plot ratio and a potential development charge payment of $3 million, this works out to about $1,100 per sq ft (psf) per plot ratio.

"Sites costing less than $100 million provide a comfortable 'entry level' for developers, and there are already a few foreign developers currently evaluating the property," said Mr Donald Han, managing director of Cushman & Wakefield.

Credo's deputy managing director Tan Hong Boon said, "The site is in a popular district, and the price seems reasonable if the economy remains on the recovery track."

Analysts said the site is targeted at the high-end market, as the area is well known for its luxury developments. One analyst, who declined to be named, said the breakeven price for the new development is estimated to be close to $1,800 psf, and the new units could be priced around $2,000 psf.

According to data from the Urban Redevelopment Authority (URA), another development in that area, Parc Seabreeze, transacted at $1,362 to $1,500 psf in August. Meanwhile, units at Silversea at Marine Parade, were sold at $1,255 to $1,576 psf.

The Meyer Place also houses a conservation 3-storey mansion, which used to be the residence of the late rubber tycoon and philanthropist Tan Lark Sye.

It is now used as a condo clubhouse and the succesful developer would have to comply with conservation guidelines if any redevelopment work is planned for the mansion.

"Keeping the conservation house should not pose a problem, since the existing condo could co-exist with it," said Mr Tan.

The collective sale tender exercise for the property will close on Oct 28.