A ROW of 15 terrace houses in Jalan Bunga Raya have been sold for $61 million or an all-up unit land price of $739 per sq ft per plot ratio (psf ppr) - a record for freehold residential land in the Balestier/Novena area.

Before the deal, which was brokered by DTZ, the highest residential land price fetched in the area was around $600 psf ppr.

DTZ said the buyer of the 15 houses is a consortium comprising Chinese developers and local partners. All owners of the houses have agreed to the sale.

The 15 homes have a total land area of 24,058 sq ft. Access to the houses is by Jalan Bunga Raya, which can be alienated by the state for about $7 million, boosting the land area to 32,978 sq ft, subject to approval by the Singapore Land Authority.

A development charge of about $263,000 is also payable. The $739 psf ppr unit land price to the developer includes these two payments it will have to make to the state and based on the enlarged plot size.

Under Master Plan 2003, the site has a 2.8 maximum plot ratio - the ratio of maximum potential gross floor area to land area - and a 36-storey height limit. DTZ estimates the plot can be developed into a new condo with about 56 apartments averaging 1,500 sq ft. "The breakeven cost is likely to be $1,150-1,200 psf," said DTZ senior director, investor advisory services & auction, Shaun Poh.

Separately, DTZ has put up for sale GMG Building, a 12-storey freehold office block in Robinson Road.

The property is being sold by Robinson Land Pte Ltd, which is currently refurbishing the block. Refurbishment work, estimated to cost about $5-6 million, is expected to be completed and the building ready for occupation around the first quarter of 2008.

"This prime office building will be sold, completely refurbished and with vacant possession, which would allow investors to take advantage of current favourable office rental rates," Mr Poh said.

"It's also an excellent opportunity for end-users seeking a corporate HQ with naming rights. The property is expected to fetch about $2,600 psf over the total strata area of 54,832 sq ft, working out to a total amount of $142.6 million."

Robinson Land, whose shareholders include the Buxani Group of Singapore and some overseas investors, bought GMG Building last year for $48 million or $875 psf of strata area.

Refurbishment work, which started recently, will boost the building's net lettable area (NLA) to 54,895 sq ft, about 5 per cent higher than the previous NLA. There is not much redevelopment.

The refurbished building is being sold through an expression of interest exercise that closes on Dec 5.

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