In a significant real estate move, Aurum Land, a subsidiary of the esteemed Woh Hup conglomerate, has clinched the first collective sale in Singapore since the government’s recent hike in the buyer stamp duty for residential property purchases. The winning bid of S$66.8 million (US$49.4 million) for the freehold property located at 34 and 36 Kheam Hock Road in District 11 marks a 5 per cent premium over the guide price of S$63.8 million, setting a land price of approximately S$20,876.75 per square metre (or S$1,940 per square foot).
This pivotal acquisition grants Aurum Land, known for its commitment to design excellence and quality construction, the opportunity to redevelop the 34,433 square foot (3,199 square metres) site into a project featuring bungalows, semi-detached houses, or terrace houses.
Aurum Land’s CEO, Michelle Yong, expressed excitement about entering the landed property sector, highlighting the potential for highly curated living in this segment. She stated, “With this acquisition, we’re excited to broaden our scope into the landed property sector, which will allow us to apply our distinctive combination of design excellence and quality construction to a segment and locale rich with potential for even more highly curated living.”
The acquired property, situated within 1 kilometre of the prestigious Singapore Chinese Girls Primary School and less than a 15-minute drive to the CBD and Orchard Road, currently hosts a 1989 vintage townhouse complex known as Kew Lodge. The current development includes 11 “maisonettes” ranging from 187.01 to 264.95 square metres, with a total strata area of 2,335.16 square metres.
Homeowners at Kew Lodge are set to trade their units for more than S$5 million each. Aurum Land plans to transform the two-story mixed-landed site into a bespoke collection of luxury houses, including CEO Michelle Yong’s self-designed family home.
Despite the government’s April increase in additional buyer’s stamp duty aimed at foreign buyers, the landed property market in Singapore remains primarily insulated. According to Sakal Real Estate Partners, the sole marketing agent for Kew Lodge, demand for exclusive and well-appointed residences is expected to stay robust among affluent local buyers.
Steven Ming, Managing Partner at Sakal, notes, “In land-scarce Singapore, we face a comparatively restrictive fresh supply of new landed properties as opposed to non-landed properties. We view ownership of prime landed homes as a significant store of wealth that presents significant capital upside over time. A landed home purchase today can be a strategic investment for future generations.”
The Kew Lodge transaction, subject to approval by the Strata Titles Board, marks a significant milestone for Sakal Real Estate Partners. The property advisory and brokerage firm, co-founded in 2018 by Steven Ming and Joe Kwan, has rapidly made a name for itself. The transaction is the first collective sale handled by Sakal, with a notable track record, having managed nearly S$4 billion in joint, land, and residential portfolio sales.
Notable deals brokered by Sakal include the S$213 million sale of the 21 Anderson freehold apartment block in District 10 and the S$340 million sale of the Robinson Centre commercial building in the CBD. The firm’s experience and successful track record position Sakal as a key player in Singapore’s competitive real estate landscape.
Aurum Land’s successful bid for the Kew Lodge site marks a pivotal moment for the company and signifies the resilience of the landed property market in Singapore. As policy shifts continue to shape the real estate landscape, the strategic acquisition by Aurum Land underscores the allure of prime landed homes as a robust investment for generations to come.
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