The owners of Mandarin Gardens would stand to earn $1.58 million to $5.07 million based on the reserve price.
Mandarin Gardens condominium is now poised to raise the bar for collective sales attempts in Singapore as owners of the 99-year leasehold development have set a $2.48 billion price tag in a new en bloc attempt, reported Channel NewsAsia.
“This would represent probably the highest land price ever in Singapore in terms of absolute quantum,” said International Property Advisor chief executive Ku Swee Yong.
“$2.5 billion sounds large, but that’s partly also because this piece of land is one million square feet. Multiplied by the plot ratio, you could in fact build about three million square feet of residences.”
With C and H Realty as the appointed marketing agent, the collective sale agreement states that owners of the East Coast development stand to earn $1.58 million to $5.07 million based on the reserve price.
Located at Siglap Road, the 1,006-unit condominium enjoys a sea-facing view of East Coast Park and is near various schools such as Tao Nan School and Victoria Junior College.
Analysts believe the owners could face an uphill task as the $2.5 billion reserve price sits in uncharted territory.
This comes as developers must still consider the Additional Buyers’ Stamp Duty, development charge and upgrading premium as factors that could pile on the costs, which could balloon to a whopping $3 billion or $4 billion.
Currently, the former Farrer Court, which has been redeveloped into d’Leedon, holds the record for the largest collective sale by dollar value, fetching around $1.3 billion in 2007.