A former HUDC estate in Potong Pasir Avenue 1 has been snapped up for S$ 334.2 million, making it the third collective sale this year.
The estate, called the Raintree Gardens, was acquired by the UVD (Projects), a joint venture of the UOL Group and United Industrial Corporation, following a public tender launched last September.
At S$ 334.2 million, the purchase price of the 175-unit estate translates roughly to about S$ 1.89 million per unit for Raintree Gardens homeowners, an amount that property experts say is a premium of almost 90% in light of the S$ 1.1 million transaction price this year.
The landmark acquisition was described as ‘phenomenal’ by the collective sale committee. Aaron Wan, associate director at ERA and a member of the sale committee, said they did not expect such a good response and an even more extraordinary return for a property that cost S$ 600,000 in the 1990s.
“For each of us to be getting about S$ 1.9 million hits the sweet spot,” Wan said.
The acquisition of the Raintree Gardens estate is a land-banking strategy in the part of the UOL.
“The location also allows us to ride on the Bidadari story,” said Liam Wee Sin, UOL deputy group chief executive.
Located next to Kallang River and near Potong Pasir MRT station, the Raintree Gardens estate is 201,405 square feet property zoned for residential use with a 2.8 plot ratio. The UVD seeks to develop a 750-unit residential property on the site.
The sale of the Raintree Gardens is considered to be a coup by property experts after years of relative stagnation in the market.
“Collective sales are making a comeback,” said Ong Kah Seng, director of R’ST Research. Developers are looking for more property options and are likewise eager to find roots in the Potong Pasir area given the plans and proposals that will energize the area, Seng said.