High Point up for fourth collective sale

Following Chuan Park’s footsteps, freehold residential condo High Point is back on the market for collective sale again, with Savills as the sole marketing agent. 

This new sale comes just three months after Shun Tak Holdings pulled out of the S$556.7 million purchase on 9 December. By doing so, they forfeited their S$1 million tender deposit. 

The Hong Kong-listed developer would not have been affected by the additional buyer’s stamp duty (ABSD) hike from the cooling measures, which increased from 25% to 35%. 

Not High Point’s first rodeo

High Point’s first collective sale attempt was in 70%, which fell through after it failed to secure the required 80% consensus from the building’s owners. 

Its second and third public tender attempts were in 2019 and 2021, with the same price tag of S$550 million. Its fourth sale remains unchanged, following the same guide price as the second and third sales. After factoring in the 7% bonus gross floor area (GFA) for balconies, it works out to around S$2,508 psf ppr. 

More than 80% of the building’s owners have given the green light and signed the collective sale agreement.

High Point

Completed in 1974, High Point is centrally located in the premium enclave of District 9, just off Orchard Road. 

The condo currently comprises of 57 apartments and 2 penthouses. The apartments span 268 sqm (2,885 sqft) and 272 sqm (2,928 sqft), while the penthouses are 589 sqm (6,340 sqft) and 592 sqm (6,372 sq ft) each. 

Its residential tower currently stands at 22 storeys, with a gross floor area (GFA) of 211,976 sqft and a gross plot ratio (GPR) of 2.8. It has a development baseline of around 213,383 sqft. 

Zoned for residential use, the freehold development sits on a land area of 47,606 sqft. It has redevelopment potential of being built up to 36 storeys, with 98 units at 200 sqm (2,153 sqft) each.

Potential plans

According to Savills, High Point is primed to be redeveloped into an ultra-luxurious development, perfect for those who enjoy the high life. 

Since its launch in 1974, High Point has enjoyed a meteoric psf price increase of 86.84%, moving from S$742 psf in 1995 to S$1,387 psf in 2017.  

However, this is at least 16% lower compared to other similar condos in the area that obtained their temporary occupation permit (TOP) at around the same time, such as Elizabeth Towers (TOP 1980), with 116.11% and Kimsia Court (TOP 1970), with 103.25%.

Desirable location

Tucked away at the end of a cul-de-sac on Mount Elizabeth Road, High Point provides exclusivity to its residents. 

Depending on the stack and floor level, the condo commands unblocked panoramic views of Goodwood Hill’s lush greenery and the Central Business District skyline.

Connectivity and amenities

Orchard Road MRT station, which will become one of the stations on the Thomson-East Coast Line in 2022, is a mere 7-minute walk away.

Daily amenities and groceries can be picked up at Scotts Square or Paragon Market Place, a six and eight minute walk away respectively.

Less than 1km away is the shopping belt of Orchard Road. Residents can walk to ION Orchard, Takashimaya and Triple One Somerset in 10 to 15 minutes.

Other key amenities in the vicinity include Mount Elizabeth Hospital and Paragon Medical and private clubs such as Tanglin Club and The American Club. The Singapore Botanic Gardens is a 10-minute drive away.

Educational institutions

Nearby schools within 1km of the property include Anglo-Chinese Junior School and Eton House International Pre-School (Claymore). Anglo-Chinese Primary School, Singapore Chinese Girls’ Primary and Secondary Schools, St. Joseph’s Institution and St. Margaret’s Primary School are within 2km.

Hitting the sweet spot

A combination of factors need to come together in order for High Point to secure a successful collective sale. High Point currently has many good things going for it, such as:

Good location. It’s located in the heart of glamorous Orchard Road, with many amenities, education institutions and transport options less than a 10-minute walk away. ‘Nuff said.

Good GPR. With a high density gross plot ratio of 2.8, it can be built up to 36 storeys. This means units with better panoramic views and a higher profit for developers.

Manageable project deadline. High Point’s forecasted project size of 98 units makes it a small-scale development. Developers need to build and sell a condo within 5 years to avoid high ABSD charges of 30% of the land price. This is regardless even if the project is made up of 1,000 units or 100 units.

Border restrictions easing. International travel restrictions is set to ease, with the Ministry of Health streamlining border measures and progressively expanding the VTL to more destinations. Foreigners form the majority of buyers of luxury condos, so this is definitely good news for luxury developers.

Condos in District 9 make up at least 26.9% of private condos sold within the CCR region over the past years, with the volume picking up in 2021.

Luxury apartments (especially those with freehold status) are seen as a valuable asset class to preserve value in the face of pandemic-induced uncertainty and rising inflation.

Will the fourth High Point collective seal succeed? Let us know in the comments section below or on our Facebook post.

If you found this article helpful, check out What factors are necessary for a possible en bloc or collective sale? and Freehold residential tower High Point up for public tender.

Looking for a property? Find the home of your dreams today on Singapore’s fastest-growing property portal 99.co! If you would like to estimate the potential value of your property, check out 99.co’s Property Value Tool for free. Also, don’t forget to join our Facebook community page! Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

The post High Point up for fourth collective sale appeared first on 99.co.