Tanjong Katong Walk-Up Apartments: A New Opportunity for Collective Sale at a Reduced Price of S$63 Million

Lower Asking Price to Attract Potential Buyers

The Tanjong Katong apartment complex, comprising 26 units, has again been put up for collective sale at a lowered request price of S$63 million. Earlier, this estate, situated at 56 to 62H Tanjong Katong Road in District 15, was presented for sale at a suggested price of S$65.5 million in July 2022. Marketing agency Huttons Asia announced on April 11 that the owners of the four-story walk-up development had received multiple offers below the original asking price.

Land Details and Redevelopment Potential

The 9,999-year leasehold site spans a land area of 3,009.8 square meters (sq m). Consequently, a plot ratio of 1.4 can yield roughly 4,213.72 square meters of gross floor area upon redevelopment. This corresponds to a land rate of S$1,401 per square foot per plot ratio (psf ppr) and includes an estimated land betterment charge of roughly S$530,000. Furthermore, considering a 7% bonus balcony gross floor area, the land rate could be further decreased to S$1,375 psf ppr.

Proximity to Amenities and Attractions

The Tanjong Katong walk-up development is conveniently located within walking distance of Paya Lebar MRT station and popular shopping centers such as Parkway Parade and PLQ Mall. Additionally, residents can enjoy easy access to Singapore Sports Hub and East Coast Park, which offer numerous recreational opportunities.

Potential Yield and Target Demographic

Upon redevelopment, the site can accommodate 49 apartments with an average size of 85 sq m each. The new development is anticipated to attract professionals and young couples seeking a modern living experience in a well-connected area.

Market Trends and Upcoming Tender Closure

The recent success of Tembusu Grand, another development in District 15, has generated optimism for the Tanjong Katong walk-up development. Tembusu Grand sold 340 of its 638 units at an average selling price of S$2,465 psf during its launch weekend. Terence Lian, the Head of Investment Sales at Huttons Asia, anticipates strong enthusiasm from numerous developers, given the rapid sales of Tembusu Grand. The Tanjong Katong walk-up development tender is scheduled to close at 2 pm on May 9, 2023.