Enbloc sale

August 22, 2008 | By Raymond Tan In Property |

Maison Royale, a freehold residential site in Newton, has been put up for collective sale. Owners of the 20-unit project are asking at least $50 million. Including an estimated $300,000 development charge (DC) and taking into account a plot ratio of 2.8, the price works out to $1,273 per square foot per plot ratio (psf ppr).

In contrast, nearby Lincoln Lodge was sold for $243 million, or $1,449 psf ppr including an estimated DC of $413,000 in June last year at the height of the en bloc frenzy. The comparatively lower price for Maison Royale is in line with current weaker market sentiment.

Analysts said that if the site is sold for $1,265 psf ppr, the breakeven cost will be around $1,665 psf. The successful developer could launch the apartments in the new development at around $1,915 psf.

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