Ravi Chandran
Owners of Bishan Park condo are expecting offers of around $680 million to $688 million
ERA Realty, the marketing agents for the collective sale of Bishan Park Condominium, today announced on Sep 24 that the owners of the 320 units development are expecting to close the sale at $680 million to $688 million. Completed in 1994, the District 20 development is located at 14 Sin Ming Walk and comprises of five blocks of 10 storeys each.
Bishan Park condo is a 99-year leasehold development, with 71 years left on its lease. ERA said that the development sits on 269,796 square feet (sq ft) of land area with a plot ratio of 2.1. The land rate for Bishan Park condo works out to $1,122 psf/ppr after factoring in a 7 per cent bonus balcony gross floor area (GFA).
ERA said that buyers of the site will have to cough up another $70 million to $75 million to intensify the site of the Bishan Park condo and to top up to a fresh 99-year lease.
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Such redevelopments are subject to approval from the relevant authorities. The proposed residential redevelopment will not require a pre-application feasibility study, ERA said.
If the sale goes through at the indicated guide price, the owners of Bishan Park condo stand to receive proceeds ranging from $1.9 million to $2.3 million for each unit. More than 80 per cent of the condo’s subsidiary proprietors by share value and strata area have signed the collective sale agreement, said Stanley Koo, ERA’s division director.
Kebun Baru Mall and Ang Mo Kio Market and Food Centre are nearby the development. Located in the heartlands, there are several bus services available in the area. Notable schools within driving distance include St Nicholas Girls’ School and James Cook University Singapore. A host of other amenities, such as banks, cinema, a library, supermarkets, restaurants, and shops can be found at Thomson Plaza or Junction 8, which are located about 5 minutes drive away.
Bishan Park condo is located within driving distance to Upper Thomson Road where there is a string of restaurants and eating establishments. Recreational facilities nearby include the Singapore Island Country Club and the Lower Peirce Reservoir Park, which are located just 5 minutes drive away. The development is less than 20 minutes drive from the Central Business District and Orchard Road shopping district, via Central Expressway.
The vibrant en bloc sale market was checked with the introduction of the property cooling measures introduced by the Government in July last year. The Government said the property cooling measures were necessary to check sharp increase in prices, which could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply.
Some observers said that the en bloc sales market will be dampened by the cooling measures. As developers become wary of end-demand and are hurt by the 5 per cent non-remittable Additional Buyers’ Stamp Duty (ABSD) on land purchase, it is expected to have an impact on their offer prices.
Before the introduction of the property cooling measures, overall private property prices rose across most market segments, with the largest price surge seen in the Core Central Region (5.5%) and Outside of Central Region (5.6%).
As developers’ existing stock continues to diminish and supply of completed homes remain low, many projects especially those in the CCR have raised prices of their unsold units, some by even double-digits this year. Private residential market continued to gain traction with individual re-sellers have also seized the opportunity of increasing their asking prices in light of the more positive market sentiment fueled by the recent collective sales frenzy.
The higher launch prices at some new projects have however slowed the buying momentum in the primary market and sales volume has dipped considerably quarter-on-quarter. While overall sales had slipped quarter-on-quarter, it rose marginally on a year-on-year basis.
Mr Paul Ho, the chief mortgage officer at iCompareLoan said, “despite the cooling measures, Bishan Park condo may appeal to developers because of its location.”
He added: “Whatever decisions owners facing en bloc sale make, it is better to make it fast so that the sale (or non-sale) can be concluded with minimal delay and maximum benefit to the owners.”
One way is to conduct a Collective Sales Agreement (CSA) as well as concurrently collect a “Non Collective Sales Agreement (NCSA)”, so that once a NCSA reaches 20%, the collective sale process is called off. There is really no point to drag on.
Mr Ho suggested that if one’s home is at risk of en bloc, the owner could consider a home loan where there is no locked-in penalty, but instead entails a higher housing interest rate cost. The next best option is to look for packages with a waiver of locked-in penalty due to sale of property. Such owners may contact a mortgage broker to assist them to find such packages with waiver of locked-in penalty.
Whatever decisions owners facing en bloc sale make, it is better to make it fast so that the sale (or non-sale) can be concluded with minimal delay and maximum benefit to the owners. One way is to conduct a Collective Sales Agreement (CSA) as well as concurrently collect a “Non Collective Sales Agreement (NCSA)”, so that once a NCSA reaches 20%, the collective sale process is called off. There is really no point to drag on.
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