The mandated 80% approval not achieved, the mega-site Ivory Heights in Jurong East has thus missed out on sealing a collective sale.
Price was the point of contention for some owners
This is the first public tender which failed to get the requisite 80% approval. Some analysts are attributing this to recent cooling measures and the delay in the Kuala Lumpur-Singapore High-Speed Rail (HSR).
The reserve price for the former HUDC estate in Jurong East was originally set at $1.34 million. But it has since been twice-revised and last stood at $1.68 million, which meant each owner would have received $2.5 million to $2.8 million.
Distance between the seller and buyers expectation growing?
Changing market conditions have also made it harder to convince the remaining 6% to sign on the dotted lines. Could future mega-sites face the same challenges as Ivory Heights?
Developers are likely to be more careful with their land acquisitions now, and larger sites often represent higher risks for them. While the buying still goes on, they may opt for smaller plots at good locations for a better turnaround.
Ivory Heights is situated in Jurong East, a district which will be developed into a bustling commercial and residential property soon.
It has a large land area of 825,502 sq ft, in addition to its location. It is situated near both the Jurong East and Chinese Garden MRT stations. Had the HSR project gone on as previously planned, the HSR terminus might have also been near that.
One of the upcoming en bloc sites coming up is the 660-unit Pine Grove. Currently, 78% of its owners have agreed to sell at a specific price.