JLL Singapore has announced its appointment as realtors for Margate Point, a 15-unit apartment development at Margate Road, collectively offered by the majority owners for sale by tender in their maiden en-bloc attempt.

Located off Meyer Road and Mountbatten Road, Margate Point has a land area of about 12,800 sq ft and is zoned Residential with an allowable gross plot ratio (GPR) of 2.1 under the 2014 Master Plan. Subject to design and approval from the relevant authorities, the site may be redeveloped into a maximum of 35 apartments with an average size of 70 sqm per unit.

Senior consultant at JLL, Mr Karamjit Singh says, “Margate Road happens to be the dividing line that segregates the high-rise residential zone from the safeguarded 2-storey landed estate. When redeveloped, the new high-rise development at Margate Point’s site would stand to enjoy excellent, unobstructed views across the vast Meyer Road and Goodman Road landed zones, until the low-rise residential areas in Joo Chiat. The stunning views, combined with its central Katong location and its close proximity to a future MRT station, would be sought-after selling points.”

“This current collective sale cycle has performed quite differently from the previous cycle, where the average transacted value per site has increased. Many mega-sized projects have been launched and sold over the past year, with more of such mega-sites in the process of garnering their requisite consent levels,” Mr Singh says. 

JLL Singapore reports that some 24 collective sale sites have been sold within the first four months of 2018 at an average deal size of approximately $338 million per transaction. Last year in 2017, 32 sites were sold at an average of $275 million per transaction. During the previous peak of the collective sale cycle in 2007, the average deal size was only about $131 million.

“Margate Point’s minimum expected price of $38 million offers boutique developers and contractors an attractive and affordable redevelopment proposition, particularly if they have found themselves priced out of the market due to the high investment quantum needed for the larger private and government sites," says Mr Singh. "Further, this property may also appeal to institutional investors or families looking to acquire a complete residential development to hold as a long-term investment to hedge against the rising property prices in this area. The existing typical apartment size of 1,280 sq ft makes it quite rentable.”

Mr Singh also suggests that “there is a high chance of getting 100% consent from the owners towards this collective sale. At the moment, owners representing 14 out of 15 of the apartments have already inked their consent to the collective sale. Should the last unit’s consent be obtained, the owners can then bypass the Strata Titles Board application process and work towards legal completion taking place within three months of contract.”

JLL Singapore advises that the tender for Margate Point closes on 6 June 2018 at 2.30pm.

For more information regarding the Margate Point property, phone or email Karamjit Singh from JLL Singapore via the contact details listed below. 

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