The property unit of Straits Trading Company will be developing a cluster of freehold bungalows at the prime Chancery Lane area as the mainboard-listed company is acquiring the original developer, Tertius Development.

The project, called Chancery Five, will have 12 bungalow units and sits on a land plot of 27,600 square feet. The size of the bungalows will range between 4,800 square feet to 6,500 square feet each.

Each of the two-storey bungalows will have five rooms, an entertainment room, an attic, a private basement car park, a swimming pool and a lift.

Eric Teng, chief executive officer of Straits Trading, said the Chancery Five project is in line with its overall strategy of developing properties that are both exceptional and of high quality.

While the company did not disclose the value of the development, property analysts estimate it to be worth about S$58 million.

Based on the project’s estimated worth, Cushman & Wakefield’s regional managing director Donald Han said that the bungalows would be priced at slightly less than S$1,000 per square feet (psf).

This means each unit would be priced at about S$4.8 million, which he said is “a fair price for a bungalow on Chancery Lane”.

Mr Han added that its close proximity to top schools such as the Anglo-Chinese and Singapore Chinese Girl’s schools, as well as to Orchard Road, makes it a hit with families and sub-letters.

Meanwhile, Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said that based on similar properties in the vicinity, Chancery Five should fetch about S$500 to S$600 psf.

“With the largest unit at about 6,500 square feet, I have a feeling that they will price it above S$4 million per unit,” said Mr Mak.

“Landed property will always have a place with investors. It has the highest price increase in 2009 compared to other types of properties,” said Mr Han.

Source: Channel News Asia, 2 Mar 2010