A plum vacant freehold site of 15,097 sq ft in the Cluny Hill Good Class Bungalow Area is being sold for S$21.52 million or S$1,425 per square foot based on the land area.
The property is being sold by Standard Chemical Corporation. The buyer is Aston Holdings, Realstar Premier Group, which brokered the transaction, told BT.
A company search revealed that Aston is 90 per cent owned by Tan Koo Chuan, who also controls developer Yi Kai Group.
Based on caveats data, the Cluny Hill property was previously transacted in 2005 at S$6.64 million. The site includes three conservation trees.
Realstar Premier estimates it may cost S$6-8 million to build and fit out a new bungalow with a gross floor area of about 8,000-10,000 sq ft on the site.
The transacted price of S$21.52 million is lower than the S$24 million that the seller is understood to have looked for earlier this year.
The S$1,425 psf on land area at which the property is being sold is lower than the S$1,659 psf at which a GCB along Cluny Road facing the Botanic Gardens was transacted at in February 2014.
Market watchers suggest one factor for the lower price for the Cluny Hill property is that there is a power station next door.
Realstar Premier Group managing director William Wong said: “Most potential buyers of GCBs these days are looking for properties in the S$20-25 million range. About two years ago, in the first half of 2013, the budget was typically S$25-30 million.
“With sellers having lowered their price expectations, we are starting to see more GCB deals in this range and I believe there should be a pick-up in the number of transactions. At current levels, prices are attractive for buyers.”
He added that the typical profile of GCB buyers currently are new citizens as well as those living in smaller bungalows and aspiring to upgrade to a GCB.
GCBs are the most prestigious type of landed housing in Singapore. The Urban Redevelopment Authority has designated 39 locations on mainland Singapore as Good Class Bungalow Areas – with strict planning rules to preserve their exclusivity and low-rise character.