2 collective sale sites relaunch at lower prices

In light of the cooling collective sales fever, 2 more sites are re-entering the market though at lowered prices.

Gilstead Court in city fringe moves to lower reserve price by $15 million

Gilstead Court, Condo

A freehold site of a palatable size and in the Newton-Novena city fringe district should be popular with developers.

The collective sale market has however been weakening and Gilstead Court is perhaps hoping to hasten their en bloc process by lowering their reserve price from $168 million to $153 million.

It has been relaunched for tender and their collective sale committee has proposed for the new and lower asking price.

The proposal is underway but it still has to attain 80% approval by total share value and by total floor area.

Currently, more than 60% have approved the new reserve price which is almost 9% lower than the original asking price. With the new proposed $153 million reserve price, the land rate will be reduced to $1,448 psf ppr (or $1,353 psf ppr with the 7% bonus balcony plot ratio).

The site is situated near the Newton Food Centre and in between the Newton and Novena MRT stations.

Lakeside Apartments considers a $35 million price-cut

Lakeside Apartments.

Further out west in Yuan Ching Road, the 99-year leasehold Lakeside Apartments is making fresh attempts at its sale en bloc with a new price tag.

They have a current support level of 70% from the unit owners to lower the reserve price from $240 million to $205 million. With the new reserve price, the land rate translates to $939 psf ppr.

The 5% additional buyers’ stamp duty implemented last July applies, however. The property currently holds 120 units on a land size of 12,465 sq m.

All the units have the same built-in size and should the new reserve price be instated, each unit owner could stand to receive approximately $1.7 million.

The site is located between the Lakeside and Chinese Garden MRT stations and will benefit from the development of the Jurong Lake District.

Within the first month of 2019, there are already more than 5 sites re-launched for collective sales and counting.

Could there be a rush for these properties to be sold en bloc?

Like Grange Heights which took 40 years before their making their second attempt at the collective sale process, is it worth waiting for the next upturn in the property cycle or gunning for the finishing line now?

See moreHDB market expected to be subdued this year