The project’s $1.86 billion asking price works out to $1,307 psf per plot ratio, after considering the differential and lease upgrade premiums payable based on a maximum permissible gross floor area of around 1,875,760 sq ft.
Pine Grove, a former HUDC project at Ulu Pandan Road, is up for collective sale carrying an asking price of $1.86 billion, reported the Business Times.
Despite the cautious mood in the collective sale market following the government’s introduction of new property cooling measures in July, the asking price for the 660-unit privatised condo was increased from $1.72 billion to $1.86 billion to entice at least 80 percent of the owners to agree to sign up.
More: Understanding The En Bloc Process (August 2018)
As this year’s first billion-dollar fresh tender within the en bloc market, the project will serve as a litmus test for developers’ appetite for such deals.
2018 was a successful year for en bloc sale transactions until the government rolled out new property curbs in July to prevent property prices from overheating. The Urban Redevelopment Authority’s rule on the maximum number of units within non-landed residential projects outside the central area was also tightened.
Located within the Holland Road area, Pine Grove sits on an 893,219 sq ft site. It has 64 years left on its 99-year lease and a gross plot ratio of 2.1.
Subject to planning approval, the site could be redeveloped into a 24-storey residential landmark with 2,050 maximum allowable housing units averaging 85 sq m.
The project’s $1.86 billion asking price works out to $1,307 psf per plot ratio, after considering the differential and lease upgrade premiums payable based on a maximum permissible gross floor area of around 1,875,760 sq ft.
Pine Grove’s tender, along with Grange Heights – which was launched in January with an $820 million reserve price – will be closely monitored by the market to determine if collective sale demand still has legs.
Over 30 en bloc sales sites failed to find buyers at the close of their tenders in recent times.
These include the Spanish Village condominium, which failed to secure a buyer during its second en bloc attempt with a price tag of $882 million.
In fact, CBRE expects the collective sales volume to drop by 10 to 20 percent from last year’s value.
The tender for Pine Grove closes on 23 April, said project marketing agent C&H Group. The latest tender exercise for Grange Heights, on the other hand, closes on 11 March.
Get more details on the property market outlook for 2019 here
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
