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A 69,189 sq ft freehold site in the Chatsworth Good Class Bungalow (GCB) area has come on the market with an expected price tag of $80.5 million to $83.5 million.

Nos 2 to 50 Bishopswalk: The site may be developed into low-density housing with a maximum 1.4 plot ratio

At present, 25 townhouses stand on the site - at Nos 2 to 50 Bishopswalk - and their owners have decided to band together for a collective sale.

Although the site is within the Chatsworth GCB area, it may be developed into low-density housing with a maximum 1.4 plot ratio - the ratio of potential gross floor area to land area - under Master Plan 2003. Observers suggest this is in keeping with the existing development on the site.

DTZ Debenham Tie Leung, which is marketing the property, says the site can be redeveloped into a low-rise condo with about 43 units averaging about 2,000 sq ft. Alternatively, developers may consider developing 16 strata bungalows.

An estimated development charge (DC) of $8.45 million is payable for either redevelopment scheme. The $80.5 million to $83.5 million being sought by the owners works out to a unit land price of about $920 to $950 psf of potential gross floor area inclusive of DC.

The breakeven cost for a luxury low-rise condo could be about $1,400 psf, and if the developer opts for the alternative of 16 strata bungalows, the breakeven cost would work out to about $6.5 million per bungalow.

DTZ is marketing the site through an expression of interest that closes on June 14. Developers may make an all-cash offer or offer replacement units in a new development to the sellers, or come up with a combination offer.

Based on their asking prices, owners of the existing 25 townhouses stand to walk away with $3.2 million to $3.3 million per unit, representing a premium of about 50 per cent on the current value of their townhouses if sold separately.