Ravi Chandran
Vicenta Lodge near Kembangan MRT station to be put up For collective sale for $29 million
PropNex on April 21st, announced that the freehold development Vicenta Lodge, at 16,18,20,22 Lorong Marzuki – about 400m away from Kembangan MRT station – will be put up for collective sale for $29 million via public tender on 22 April 2021.
More than 80% of the owners at the 16-unit Vicenta Lodge have given their consent to collectively sell the property, and have lowered the reserve price to $29 million from the $33.6 million that they had asked for during their first attempt at selling the development en bloc in 2018.
Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “For a long time, there have been no new private residential launches near the Kembangan MRT station, and so we believe this site is likely to garner healthy interest from family offices, funds, and developers. In addition, as the supply of private homes in the Outside Central Region remains tight, the successful tenderer should see relatively keen demand for mass market homes from buyers and investors.”
The reserve price of $29 million works out to a land rate of $999 per square foot per plot ratio (psf ppr), inclusive of the development charge and bonus balcony space. Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned Residential with a plot ratio of 1.4. Spanning 1,977.1 sq m (approximately 21,281 sq ft) in land area, the plot has a gross floor area (GFA) of 2,767.94 sq m (approximately 29,794 sq ft) and the potential to build 27 dwelling units, with an average size of 100 sq m each.
Ms Goh added, “Recent project launches that are close to MRT stations on the East-West Line have done very well – such as the 1,399-unit Parc Esta (Near Eunos MRT) which is nearly fully sold since launching in November 2018, and the 566-unit Penrose (near Aljunied MRT) which is more than 77% sold following its launch in September 2020. The sales performance at these projects will help to boost confidence and it does indicate the desirability of launches along the East-West Line. Meanwhile, the ongoing transformation in Paya Lebar has also turned the precinct into a vibrant commercial hub, bringing more jobs and amenities to residents in the East.”
The Vicenta Lodge site is well-served by public transport being within walking distance to the Kembangan MRT station and it also has easy access to main roads and expressways, including the Pan Island Expressway (PIE) as well as the East Coast Parkway (ECP). The site is two MRT stops from the Paya Lebar regional commercial hub, and about 20 minutes from the central business district in Raffles Place via the MRT. Recreation amenities such as the East Coast Park beach and Bedok Reservoir Park are also a short drive away.
For shopping and dining, Bedok mall – which is just one MRT stop away – provides a wide range of F&B, lifestyle and retail options. In addition, the site is also easily accessible to three malls in Paya Lebar: Paya Lebar Quarter; Paya Lebar Square; and Singapore Post Centre. Meanwhile, a short journey away lies even more dining choices in Parkway Parade, East Coast Road, East Coast Park, and Jewel at Changi Airport.
There are many schools in the vicinity. Those within 1 km from Vicenta Lodge include Eunos Primary School and St. Stephen’s School, while schools within 2 km are Tao Nan School, CHIJ (Katong) Primary, Haig Girls’ School, Maha Bodhi School, Opera Estate Primary School, Tanjong Katong Primary School, and Telok Kurau Primary School.
The collective sale tender for Vicenta Lodge will close on 1 June 2021, 2.30 pm.
Mr Paul Ho, chief mortgage officer at iCompareLoan, said: “the collective sale attempt of Vicenta Lodge comes at a time where there is a lot of positive momentum building around collective sale.”
He added, “The lowering of the reserve price will make Vicenta Lodge very attractive to boutique investors.”
“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.”
-Paul Ho
One way to conclude an en bloc sale quickly 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.
Mr Ho added 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.
“With the right loan, the buyer can save thousands, if not tens of thousands of dollars,” he said. Adding, “which is why they would have to work with established mortgage brokers who can provide them free service.”
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.
