Chief Editor May 27 2023

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Kew Lodge at Kheam Hock Road sold to Aurum Land for S$66.8 million

Kew Lodge has been sold to Aurum Land in a collective sale for S$66.8 million which is a 5 per cent premium over the freehold residential development reserve price of S$63.8 million.

Aurum Land is a subsidiary of Woh Hop, a renowned private construction firm in Singapore.

The en bloc sale reflects a land price of about S$1,940 per square foot (sq ft) for the 34,433 sq ft freehold site.

Sakal Real Estate Partners is the sole marketing agent for Kew Lodge collective sale.

Kew Lodge, consists of 11 townhouses ranging from 2,013 sq ft to 2,852 sq ft, was initially built in the 1990s. However, as time passed, the property faced the challenges of aging infrastructure, changing demands, and the desire for more modern amenities. Recognizing the potential for redevelopment, a majority of the residents decided to band together and initiate the en bloc sale process.

The en bloc sale process involves a collective decision by owners to sell their individual units as a whole to a developer. This process allows for a significant increase in the value of the property, as the developer can utilize the land more efficiently by constructing a new development with improved facilities and greater density.

The land plot is zoned for residential or two-storey mixed landed use according to the Urban Redevelopment Authority (URA) Master Plan 2019. 

On the developer's side, en bloc sales provide access to prime land parcels that might otherwise be challenging to acquire. By pooling the individual units together, property developers can maximize the site's potential, creating more efficient and profitable projects.

Aurum Land plans to construct 8 to 10 luxury homes at the site comprising detached, semi-detached and terraced houses, with each home having five to eight bedrooms. 

Kew Lodge collective sale allowed the residents to realize the appreciation in the value of their individual units, giving them an opportunity to achieve a significant return on their investment. This windfall enabled many residents to upgrade their living arrangements, invest in other properties, or bolster their retirement savings.

As the real estate market continues to evolve, en bloc sales will likely remain an important mechanism for the rejuvenation and transformation of aging properties, providing both homeowners and developers with opportunities for growth and progress.