Despite concerns that developers’ appetite for mega-en-bloc-sites may be diminishing, Mandarin Gardens condominium in the East Coast has increased their asking price from $2.48 billion to $2.99 billion.
Mandarin Garden increases asking price by almost half a billion
The condominium’s collective sale committee (CSC) has discovered that the property was undervalued by more than $300 million.
Just 2 weeks ago, the CSC conducted a check of the Mandarin Gardens’ development baseline record with the Urban Redevelopment Authority (URA) and discovered that there was a disparity in land value which was much higher than previously understood to be.
Thus, they were not only able to increase the reserve price but also present a lower per square foot plot per ratio (psf ppr) cost to developers.
Should the reserve price be met, each unit owner will receive an average of $2.8 million.
With their latest discovery, Mandarin Gardens is now able to offer prospective developers or land buyers a reduced price of $1,191 psf ppr, down from the original $1,236 psf ppr.
The CSC together with their marketing agent, C&H Properties, believe that the 12.5% increase in asking price is a reasonable ask which is acceptable to both the winning developer and the unit-owners.
Mega-site suitable for a new development in a good location
The property’s location is on an ideal spot as the Eastside is a popular location for both local and foreign buyers. It is near many education institutions such as Victoria School, Victoria Junior College, the St. Andrew’s Autism School and the Singapore University of Technology and Design (SUTD).
With the new Thomson-East Coast MRT line and the many buses that ply the East Coast-City center route, accessibility to the city centre is quick and easy.
Offices in the Changi Business Park and Kallang Riverside Commercial Hub will also fulfill tenancy potential for new developments in the area. The nearest MRT station will be the upcoming Siglap Station on the Thomson-East Coast Line.
The new asking price exceeds even that of Pandan Valley‘s $2.66 million. The Mandarin Gardens CSC has garnered 62% approval thus far and pending the 18% shortfall for the 80% requisite for an en bloc sale before the March 2019 deadline.
With these price tags floating about in the collective sale sphere, it could be simply a matter of who makes the first killing.