SINGAPORE - Freehold Island View condominium in Pasir Panjang has been put up for en bloc sale with a reserve price of $575 million, sole marketing agent PropNex said on Monday.

This works out to a land rate of around $1,623 per square foot per plot ratio (psf ppr), after factoring in the 7 per cent bonus gross floor area allowed for balconies and an estimated land betterment charge of $178 million.

Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned for residential use with an allowable gross plot ratio of 1.4 and a building height control of up to five storeys. Based on an average unit size of around 1,076 square feet (sq ft), a new project can yield up to 402 new homes, said PropNex.

Built in 1984, the condominium sits on a sprawling 309,543 sq ft plot along Jalan Mat Jambol in District 5. PropNex said the 72-unit development is on elevated ground, just 330 metres from Pasir Panjang MRT station.

Laurence Wong, head of collective sales at PropNex, said: “(This is) the largest freehold condominium land in Pasir Panjang… In addition, the site faces Singapore’s southern coastline, potentially offering units on higher floors some seaview.”

He added that investors may benefit from a “sizeable pool of leasing demand” due to the site’s vicinity to office areas such as Mapletree Business City, Science Park, one-north and Alexandra Technopark.

“Over the longer term, the Pasir Panjang district could stand to benefit from future development in the area, such as the Greater Southern Waterfront – a new major gateway for urban living and commercial activities – as well as the ongoing rejuvenation of Sentosa and its offerings.”

Island View is the second collective sale launched in a week. Last Wednesday, the 99-year leasehold Pine Grove condo in Holland Road was put up at a guide price of $1.95 billion.

The price tag translates to $1,434 psf ppr, after taking into account an estimated land betterment charge of $1 billion for the intensification of land use and lease upgrade for the massive 893,218 sq ft site, which would take the effective purchase cost to $3 billion.

Huttons chief executive officer Mark Yip noted that the collective sales market remains “quiet at the moment”.

“Huttons Data Analytics estimates that more than 20 collective sale tenders closed in 2023, but of these, only Meyer Park and Kew Lodge were successfully...