Island View condo up for enbloc sales, asking $575million
Island View condominium in Pasir Panjang, District 5 is now up for collective sales according to their sole marketing agent Propnex.
The freehold condominium which is built in 1984 sits on a land site spanning 309,543sqft. The current development is just 72 units. If any developers were to tear down and rebuilt a new estate, it can yield up to 402 new condominium units based on an average unit size of 1076 sqft.
The reserve price of $575 million works out to be $1623psf ppr after factoring 7% bonus gross floor area allowed for balconies and also an estimated land betterment charge of $178 million.
Under the Urban Redevelopment Authority’s (URA) Master Plan 2019, the size is zoned as residential use. It has an allowable gross plot ratio of 1.4 and a building height control of up to 5 storeys high.
Largest freehold land in Pasir Panjang
According to Laurence Wong of Propnex head of collective sales at Propnex, this plot is the largest freehold land in Pasir Panjang. The site faces Singapore’s southern coastline, potentially some units may offer views of the sea.
He said that investors may benefit from the sizeable pool of tenants from offices nearby in the Mapletree Business City, Science Park, One North and Alexandra Technopark.
In the future the Pasir Panjang District can benefit from the government’s planning of the Greater Southern Waterfront, a new major gateway for urban living and commercial activities in addition to the rejuvenation of Sentosa and its offerings.
2nd Collective sales of the week
Island View condo enbloc is the 2nd collective sales in the week after Pine Grove in Holland Grove was put up at a guide price of $1.95billion. The land site measuring 893,218sqft translates to $1434psf ppr after adding the land betterment charge of $1billion.
Real estate analyst noted that the enbloc sales market is relatively quiet at the moment. Huttons Data Analytics estimated that as more than 20 collective sales closed in 2023, only Meyer Road and Kew Lodge were successfully sold.
Earlier in the year, Meyer Park a 60 unit development were sold to UOL and Singland after its 3rd attempt at enbloc sales. It was sold at $392.2 million or $1668psf ppr.
Kew Lodge at Kheam Hock Road was sold to Woh Hup subsidiary in May for $66.8million or $1940 psf ppr.
Developers becomes cautious
Mogul.sg Chief Research Officer noted that developers are becoming cautious at taking on land amidst economic uncertainties and rising financing costs. This was evident in the land bids in the government land sales at the plot at Lentor Close which received only 2 bids.
However some land tender sites at Champions Way in Woodlands had 6 bidders with offers at below expectations.
At another executive condominium land site in Tengah garnered 9bidders when it closed in Jun 27.
Nichlas Mak also revealed that in the last year, only 2 units were sold in Island View condo for a 325sqm unit in June at $5million or $1415psf. This makes the land rate of $1623psf ppr at a slight premium.
Having said that, Mark Yip from Huttons chief executive officer highlighted that if the asking price is in line with the current market land prices and the quantum is palatable, it may have a chance of a successful collective sale. The tender will close on Oct 19 at 2pm.