The relaunch price has dropped by 22 per cent from the original price. It is now expected to sell for S$1,023 psf ppr, according to ERA Realty’s valuation. The new relaunch price is a good opportunity for developers to replenish their land bank.
Park View Mansions
Developers in Singapore are stepping up their land banking efforts via the collective sales market. This is evident in the recent acquisition of Park View Mansions, which is situated in the Jurong Lake District for $260 million. The property is subject to a 99-year lease that started on October 1, 1976. Developers ERA Realty, CEL Development, and TK 189 Development, a partnership firm of KSH Holdings, were successful in winning the tender. Each developer will hold a 40% stake in the property. The joint tender fee was $100,000.
The relaunched enbloc attempt for Park View Mansions comes at a time when the residential market is experiencing a slowdown. Recent cooling measures have led to a widening of the price gap between the reserve price of a unit and the price developers are willing to pay for it. Meanwhile, unsold inventory has dwindled.
Redevelopment plans for Park View Mansions
One of the latest enblocs to go up for collective sale is the Park View Mansions at Yuan Ching Road. With a permissible plot ratio of 2.1 and a total land area of 17,834 square metres, the development has a large potential for development. Developers are expected to raise at least $320 million from the collective sale, which would be sufficient to fund land intensification and a 99-year lease for each unit.
Three Singapore developers are stepping up their land banking activities in the collective sale market. The trio of developers have acquired the Park View Mansions at Yuan Ching Road for $260 million. But the project is still far from being completed and the redevelopment process is expected to take a number of years. The project is also expected to face challenges, namely higher costs, labour shortage and supply disruptions, macroeconomic uncertainties and a spike in interest rates. To overcome these difficulties, it will be prudent to collaborate with suitable partners.
Price of Park View Mansions
The price of Park View Mansions is going down. The property was originally put up for collective sale for $320 million in March 2018, but the price was subsequently revised downwards to $250 million. The property is on a 191,974 sq ft plot and is slated to yield 440 units. Park View Mansions is part of the Jurong Lake District, which is slated to become the country’s largest business district outside the CBD. It also boasts an integrated tourism development next to the Jurong Lake, which will be completed in 2022.
The joint venture that bought the Park View Mansions will be developing the estate with 440 units. The sale price is estimated at S$1,023 psf ppr, and is subject to planning permission from the Urban Redevelopment Authority and JTC. The property has been under a 99-year lease since October 1, 1976.
Location of Park View Mansions
The owners of Park View Mansions have made an impressive announcement. The three developers have bought the enbloc site for S$260 million, intending to transform it into a residential project. As part of the agreement, they will assume the 99-year leasehold property. In addition, they will work with KSH Holdings to ensure that the project remains in Singapore. This news is good news for the enbloc market. Currently, there are at least 10 enbloc developments in Singapore, with a median price of S$1,023 per square foot. A string of successful tenders has resulted in an increased demand for the enbloc market.
Park View Mansions’ relaunched collective sale tender was won by a joint venture. The buyers will each hold a 40 percent share of the development. The joint venture will spend the remaining funds to develop the site. The development will be located near the Jurong Lake District and Lakeside MRT station. The site is zoned for residential Hillhaven Condo use and is expected to have gross floor areas of up to 403,145 square feet.