Mayfair Gardens to go en bloc...

According to The Straits Times today, Mayfair Gardens in Rifle Range Road is being put up for collective sale.

The owners want at least $210 million for their 99-year leasehold site, which has a land area of 208,475 sqft. The site is zoned for residential use with a gross plot ratio of 1.4, and there are about 72 years left on the lease. A new development could potentially yield a maximum gross floor area of about 292,000 sqft, which translates to an estimated 200 units of 1,500 sqft apartments. The $210-million sale price gives a breakeven level of around $1,400psf for a developer.

The $210 million price tag includes an estimated $40 million for development charge and the topping of the site's lease to 99 years. This translates to about $857psf of potential gross floor area. If successful, owners of the 124-unit development will get between $1 million and $2.1 million each.

CKS Property Consultants, which brokered the Dragon Mansion collective sale - the only one done this year - is the marketing agent. It said the Rifle Range estate is very attractive, given its location in the established residential area of Bukit Timah and its proximity to the upcoming Blackmore MRT station. The Mayfair Gardens site also fronts Dunearn Road, is next to a good class bungalow area and relatively close to the Bukit Timah Nature Reserves.

However, the $1,400psf breakeven level for developer is rather high, especially when surrounding projects are mostly selling at lower prices. Nearby developments include Gardenvista, Jardin, The Sterling and The Nexus. A unit at freehold Jardin in Dunearn Road was sold for $1,510psf in August.

The Mayfair Gardens tender closes on Jan 14, and we cannot wait to see how this one turns out...

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