The overall cost for Mandarin Gardens could shoot up to $4.09 billion, taking into account the development charge and lease top-up.
Residents at Mandarin Gardens approved the $2.48 billion selling price on Sunday (26 March), but they are still currently gathering the signatures of at least 80 percent of the owners to proceed with the en bloc sale, reported Channel NewsAsia.
If they fulfil the consent requirement and successfully find a buyer, the 99-year leasehold condo at Siglap Road would set the record for Singapore’s most expensive collective sale.
More: Mandarin Gardens eyeing $2.5 billion collective sale
“This will set an all-time record which will unlikely be broken in one or two decades. It would also give some encouragement to other larger ageing estates such as Pine Grove or Braddell View,” said ZACD Group’s executive director and chief investment officer, Nicholas Mak.
At present, the record holder is the former Farrer Court, a 99-year leasehold project that was sold for $1.3 billion in 2007 and subsequently redeveloped into d’Leedon.
However, marketing agent C&H Properties informed residents of Mandarin Gardens that aside from the selling price, the would-be buyer needs to pay a development charge of about $1.28 billion and another $325.4 million to top-up the lease for the site spanning one million sq ft that can be redeveloped into three million sq ft of units.
This is expected to raise the overall cost to around $4.09 billion, which translates to $1,236 psf per plot ratio (psf ppr). Hence, the winning bidder could possibly sell the redeveloped units for $2,300 psf, noted C&H Properties.
The marketing agent added that they aim to accomplish the 80 percent consent requirement by June, with the en bloc launch likely to happen as early as April.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org