Katong Park Towers sold 20% above asking price at $345m

Bukit Sembawang plans a residential development nestled along Meyer & Mountbatten Road.

Katong Park Towers, located in the enclave of Arthur Road and Meyer Road, has been sold to a unit of Bukit Sembawang Estates Limited for $345m. Cushman & Wakefield (C&W), who brokered the deal, said that the sale price was some 20% above the reserve price of $288m.

According to a press release, the tender attracted a total of 10 bids and all were above the reserve price. Located approximately 200 metres from the future Katong Park MRT Station, which is slated for completion in 2023, Katong Park Towers is a prime 99-year leasehold residential site comprising a land area of 13,076.9 sqm (140,758 sqft). It is also just 10 minutes away from the Marina Bay Financial Centre.

C&W added that the current development comprises 111 units typical apartments, five penthouses, and two commercial units. It has a maximum building height of up to 24 storeys. “The site is not affected by any traffic impact study,” C&W added.

C&W also noted that the recent increase in development charges in this precinct has minimal impact on the price as Katong Park Towers has a fairly high baseline. “At the sale price of $345m, the land rate for Katong Park Towers translates to $1,280 per sq ft per plot up to the development baseline, taking into account an estimated $60m for the lease upgrading premium,” it added.

C&W director of Capital Markets Christina Sim said, “Owners at Katong Park Towers will receive proceeds ranging from $2.25m to $3.23m for the typical units depending on their floor area and size. The five penthouses will receive proceeds ranging from $4.95m to $12.08m.”

Sim also noted that these premiums are fairly substantial, compared to units which were sold individually in the open market. “This part of the East Coast is also an affluent and well-heeled neighbourhood within the charming heritage town of Katong. It is also just 5 minutes away from the state of the art Singapore Sports Hub and the Kallang Riverside Park which boasts of a leisurely waterfront park for the community,” she added.

Bukit Sembawang Estates Limited CEO Ng Chee Seng said their planned development is nestled in low-rise landed houses along Meyer & Mountbatten Road. This “will offer rare, unobstructed panoramic views of the city skyline. We see good potential in this site because it is well-connected to the future Katong Park MRT Station. With Katong’s rich heritage and rejuvenation initiatives under the Kallang Masterplan, we are confident that this will be another quality development added to our portfolio,” he added.

The sale is subject to approval from the Strata Titles Board.