Jervois Green, a four-storey freehold development at 100A Jervois Road, has been sold for $52.9 million to investors led by Mr Mike Ho, a third-generation owner of Spring Court, one of Singapore's oldest Chinese restaurants.
The price works out to a land rate of $1,601 per square foot per plot ratio, inclusive of an estimated $6.95 million development charge.
Colliers International, which brokered the deal, said the sale price was 10 per cent higher than the owner's asking price of $48 million when the tender was launched on Nov 7.
Jervois Green, which comprises eight apartments, sits on a plot of around 26,700 sq ft.
The District 10 property was held under single ownership and the sale is not subject to approval from the Strata Titles Board or High Court.
The tender closed on Dec 5.
Ms Tang Wei Leng, managing director at Colliers International, said there were six bids.
The tight bids not only reflect the market consensus on the pricing in the area, but also signal the positive sentiment among bidders amid a comeback in the residential property market, she added.
Mr Ho, Spring Court's owner, said: "My friends and I have been scouting for investment opportunities in view of the recovery in the residential property market, and found Jervois Green to be the best pick. The size of the site is ideal and its prime location offers exciting redevelopment potential."
He owns a portfolio of shophouses in several locations in Singapore.
Colliers said the 2014 Master Plan has zoned the site for residential use with a plot ratio of 1.4.
"It has the potential to be redeveloped into a five-storey project comprising 42 units of about 850 sq ft each, subject to approval by the authorities."
The selling price for the future development is envisaged to be above $2,500 psf, or from $2.1 million per unit.