SINGAPORE - Thomson View Condominium is up for collective sale via public tender at a reserve price of $950 million, after securing an 80 per cent mandate from its owners in just six months despite Covid-19-related disruptions.
Potentially the largest residential collective sale effort here by quantum so far this year, the asking price translates to a land rate of $1,293 per sq ft per plot ratio.
The land rate for Thomson View Condominium factors in an additional 7 per cent of bonus gross floor area for private outdoor spaces, an estimated differential premium of $296 million for intensification, and an upgrading premium of about $324 million for a fresh 99-year lease.
The tender will close at 3pm on Jan 13 next year.
This is the 255-unit condominium’s fifth attempt at a collective sale. Its last effort in 2018 failed to garner consensus to start a $938 million sale.
The 34-year-old development, located near Upper Thomson MRT station, sits on a land area of about 50,197 sq m and comprises 200 apartments, 54 townhouses and a shop unit.
Owners of the apartments will each stand to get between $2.6 million and $3.7 million, depending on their unit sizes, while owners of townhouses will each stand to receive $5.7 million, according to OrangeTee Advisory, Thomson View’s marketing agent.
Collective sales in Singapore are hotting up, fuelled by rising optimism in the property market, still-low interest rates, brisk sales of new homes and the limited supply of development land. Last month, a joint venture between UOL Group and Singapore Land Group won the tender for the collective sale of Watten Estate Condominium in Bukit Timah with a $550.8 million bid.
More developers are replenishing their land bank as unsold inventory is now at its lowest since the second quarter of 2017, when 16,929 units were unsold. As of the third quarter this year, there were 17,165 unsold private residential units, down nearly 12 per cent from the second quarter, and about 55 per cent less than the 37,799 units in the first quarter of 2019, according to Cushman & Wakefield.
Under the Urban Redevelopment Authority’s Master Plan 2019, the Thomson View site is zoned for residential development with a gross plot ratio of 2.1, giving it a gross floor area of about 105,413 sq m. This can yield up to 1,240 new units, subject to approval from the authorities and the outcome of a pre-application feasibility study.
Dr Henry Toi, chairman of the collective sale committee, said, “The collective sale team has worked amid the various circuit-breaker disruptions to engage all the owners, including those who could not return to Singapore due to lockdown in various countries. We are pleased to have garnered the 80 per cent consensus in just under six months.
"Based on the better-than-expected tender results for the government land sale sites in Ang Mo Kio Avenue 1 and Lentor Central, we are optimistic of a good outcome."
Mr Tay Liam Hiap, director at OrangeTee Advisory, said: "There is a limited supply of upcoming residential projects in District 20, and we believe that the potential new development, with its excellent location, easy access to amenities and surrounding greenery, will appeal to many home buyers."
Nearby nature parks include the Windsor Nature Park, MacRitchie Reservoir Park, Lower Peirce Reservoir Park and Bishan-Ang Mo Kio Park.
In the third quarter this year, only the city fringe or rest of central region (RCR) saw an increase in prices for non-landed properties. Prices in that region climbed 2.6 per cent, up from the 0.1 per cent growth in the second quarter.
Mr Marcus Oh, managing director at OrangeTee Advisory, said: "The overall price increase in the third quarter was mainly driven by non-landed home sales in the RCR. We expect RCR sites that are within close proximity of transport nodes and amenities to continue to attract developers and home buyers."