Home owners at Tampines Court have jumped on the collective sale bandwagon, with plans to put the privatised property up for sale for $960 million.
If successful, it would be the biggest collective sale deal for a former Housing and Urban Development Company (HUDC) property in a decade.
Marketing agent Huttons Asia told The Straits Times that the tender will be launched on Tuesday, having secured approval from about 82 per cent of the owners for the collective sale.
The buyer of the sprawling 560-unit development will have to pay additional charges, estimated at $348 million, for intensifying the land use and to top up the lease to a fresh 99 years. All in, the asking price and the extra charges work out to a land rate of $665 per square foot per plot ratio, Huttons added.
Mr Terence Lian, head of investment sales at Huttons Asia, said: "The owners are upbeat about the current market sentiment. They realise that there is a small window of opportunity now for them to launch the sale."
Tampines Court, in Tampines Street 11, sits on a 702,000 sq ft site, and has about 69 years left on its lease. It comprises 560 units - size ranging from 1,658 sq ft to 1,733 sq ft - across 14 residential blocks.
Mr Lian said each owner stands to receive about $1.7 million from the sale. This is its third attempt at a collective sale after its $405 million first try was dismissed by the Strata Titles Board in 2008. Around 2011, it failed to obtain the level of approval that was needed from residents.
For properties to be sold en bloc, the consent of at least 80 per cent of the owners must be obtained.
Huttons said the large site can be redeveloped to offer 2,100 private homes with an average unit size of 900 sq ft. "The site is in a mature estate and has the potential to be redeveloped into an eco-town, with larger apartments that are suitable for families," Mr Lian said.
Tampines Court will be the third development to hit the collective sale market in recent weeks, following the tender launch for freehold property The Albracca in Meyer Road, and former HUDC estate Serangoon Ville in Serangoon North Avenue 1. Should Tampines Court be sold at $960 million, it would be the biggest collective sale transaction for privatised HUDC estates since Farrer Court was sold for $1.34 billion in 2007.
Mr Lian said residents are optimistic about the sale, drawing confidence from recent bullish bids, including the record $1 billion paid for a Stirling Road residential plot under a government land tender.
The collective sale market, which has seen a resurgence since last year, is expected to turn in a stellar performance this year.
Four deals - One Tree Hill Gardens, Goh & Goh Building, Rio Casa and Eunosville - valued at $1.5 billion have already been done so far this year, surpassing the three deals worth $1 billion for all of last year.