The collective sale rush continues with How Sun Park, a freehold property near Bidaddari town, which makes an attempt at collective sales.
It is asking for a price of $78 million which would give its owners substantial returns at current market prices. The tender closes on Nov 28.
Pearlbank Apartments, a horseshoe shaped building in Outram, is also making its fourth attempt in collective sales in two weeks. It is asking for $728 million. This is a huge premium over the prevailing market prices.
Pine Grove, a 660 unit near Ulu Pandan Road has also started to collect signatures in favour of an en bloc. This is done after half of the owners of the former HUDC estate has voted in favour of the collective sale agreement on Sunday.
This is the third attempt at en-bloc, with a reserve price of $1.63 billion. This will be higher than the $1.34 billion of the former Farrer Court in 2007.
The en bloc fever is not only confined to the residential sector. City Plaza, a 18-storey freehold building with 450 units, consisted of 66 apartments, will hold an extra-ordinary meeting for the formation of the collective sale committee.
Pearl Bank apartments has generated much interest among developers, given the estate’s location near Pearl’s Hill City Park, Outram Park MRT station. It has an existing gross plot ratio of 7.4479 and could yield about 730 new homes of an average size of 800 sq ft.
The 280 apartment owners, whose unit sizes are between 1,323 sq ft to 3,993 sq ft, could get between $1.8 million to $4.9million. The rest of the eight commercial owners, whose units are between 700 sq ft to 5,630 sq ft, could get about $1.2 million to $6.9 million.
Owners are likely to get a collective sale premium of more than 55 per cent. The reserve price of a three bedroom unit is about $2.5million, much higher than the last transacted price of $1.6 million transacted two months ago.
The 37 storey leasehold development has underwent 3 en bloc attempts in 2007, 2008 and 2011. The apartment has a balance leasehold of 52 years. The reserve price translates to a land cost of about $1,500 per sq ft per plot ration (psf ppr) after taking account of a differential premium of $195 million to top up the lease. The tender is expected to close later this year.
The recent enbloc at How Sun Park, a 20-townhouse property near Bartley MRT station at $78 million or a land rate of $1,052 psf ppr allow each unit owner to get at least $3.9 million, way higher than the $1.9 million that they could have sold in the open market. One owner who bought a townhouse for less than $1.9 million three months ago felt that the proceeds from the collective sale, despite the seller’s stamp duty payable, is a huge bonus to her.