SINGAPORE- Park View Mansions will relaunch on Wednesday its collective sale tender with a 22% lower reserve price than before, making it the latest case of owners dialing down their expectations amid a quieter en bloc market.
More than 80% of the owners at the 191,974 square feet (sq ft) development right by Jurong Lake Gardens have agreed to a reserve price of $250 million, down from $320 million in March, "in view of current market conditions", Huttons Asia said in a statement.
The new price translates to a land rate of roughly S$969 per square foot per plot ratio, after taking into account an estimated differential premium and lease upgrading premium of some $140.8 million. Owners at the 160-unit development could net between $1.44 million and $1.6 million should the sale go through. The residential site has an allowable gross plot ratio of 2.1. That means it could yield up to 440 dwelling units based on an average unit size of 915 sq ft, considering the new development control guidelines on the maximum number of units for private housing developments outside the central area.
Terence Lian, head of investment sales for Huttons Asia, said in a statement: "The site presents an excellent redevelopment opportunity for developers as it is located right next to Jurong Lake Gardens. This is a rare piece of land which offers a seamless connection to the gardens and provides a natural environment, hence enhancing the well-being of residents." He also pointed to the Jurong Lake District, slated to be Singapore's second Central Business District.
Angela Lim, deputy head of investment sales, said: "Park View Mansions offers an opportune choice for developers to replenish their land bank to match the growing and pent-up demand in the Jurong area," as she pointed to the lack of a new government land sales (GLS) site in the area, among other factors.
The break-even could be $1,450 psf according to Huttons' estimate. The tender for Park View Mansions closes at 12pm on Jan 18. Gilstead Mansion relaunched its en bloc in late October at $65 million, or $3 million less than its guide price in June.
"Adapted from The Straits Times, 11 Dec 2018."