En-bloc hopeful Lakepoint Condominium now in private talks after offers fall short of reserve price

Lakepoint Condominium has closed its tender and is now in a "private treaty negotiation process". PHOTO: LIANHE ZAOBAO

SINGAPORE (THE BUSINESS TIMES) - Offers for en-bloc hopeful Lakepoint Condominium fell short of its reserve price as developers start to move more cautiously in light of new cooling measures.

It has closed its tender and is now in a "private treaty negotiation process", PropNex Realty said in a statement on Wednesday (Dec 22) night. The 99-year leasehold was launched for collective sale with a reserve price of $640 million on Oct 21 this year.

Policy changes, including higher additional buyer's stamp duty (ABSD) rates, were implemented on Dec 16 to dampen the exuberance in the housing market. Developers are now subject to 35 per cent ABSD, up from 25 per cent previously. Property analysts said that this is likely to make developers more cautious when bidding for land and cause the en-bloc buzz to fizzle out over time, according to reports from The Business Times.

Ms Tracy Goh, head of investment and collective sales at PropNex, said that the 10-week private treaty negotiation process will give interested parties "ample time" to review their plans and strategies, in light of the new cooling measures. "We remain cautiously optimistic about the collective sale tender, given the attractive site location and the limited new private housing supply in the immediate areas."

Lakepoint Condominium, which comprises 309 residential units, occupies more than 562,286 sq ft. Under the 2019 Masterplan, the site has a plot ratio of 1.4 and is zoned for residential use. The site is near the Jurong Lake District and within walking distance to Lakeside MRT station.

On Wednesday, commercial building Sultan Plaza was put on the market again, marking the property market's first collective sale attempt since the latest cooling measures kicked in, sole marketing agent Teakhwa Real Estate told BT.

Its reserve price has been lowered to $360 million from $380 million in the previous collective sale attempt in 2019.

Situated between Beach Road and North Bridge Road, the 44-year-old property at 100 Jalan Sultan comprises 211 commercial units and 33 offices, totalling 244 strata lots.

Other sites that may continue to target collective sales despite the new cooling measures include The Beaumont, Chuan Park Condominium, Sixth Avenue Centre, Baode Building and Tanglin Shopping Centre, BT earlier reported.

Teakhwa Real Estate told BT that developers are still likely to acquire land to boost their current stocks. It added that developers may favour mid-sized developments priced between $200 million and $500 million and which cater more to Singaporean buyers who are the least affected by the new cooling measures.

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