The latest collective sale tender for the 99-year leasehold condominium Horizon Towers has been relaunched for the fifth time by the owners, with the reserve price retained at $1.1 billion. This translates to a unit land rate of $2,049 psf per plot ratio, according to a press release from Champions Way Condo the marketing agent JLL.
This tender follows the one launched in September 2022 which concluded unsuccessfully. The owners had also launched the same tender in 2019 and 2018, and the first collective sale bid in 2007.
Sitting on an elevated site of 1.9ha between Leonie Hill and Leonie Hill Road in prime District 9, Horizon Towers was completed in 1984 and has approximately 55 years left on its lease.
The marketing agent JLL has asserted that the Horizon Towers site holds “significant upside potential” for redevelopment into a luxurious, high-rise residential project. With its enviable location in the Central Area close to Orchard Road and the CBD, potential developers could create various unit permutations to fit the needs of a luxury-demanding demographic.
Public transport connectivity has been further bolstered by the new Orchard MRT Interchange and Great World Stations located close to the condominium. According to EdgeProp’s Landlens tool, if Horizon Towers is sold at $1.1 billion, the new development could have initial selling prices of about $2,990 psf.
Tan Hong Boon, executive director, capital markets, Singapore, at JLL, reckons that this presents an opportunity for developers to bolster their landbank since large elevated residential plots in the Central Region are seldom available, coupled with the dwindling number of unsold new units in the Core Central Region (CCR).
Consequently, Tan is expecting the primary market to remain robust in 2023 with the relaunch of this site. Developers can, thus, be ready to capitalise on the continual increasing demand for CCR units.
The tender for Horizon Towers will be closing on March 30.