How shares of land being calculated for condo?

[lajia]

Hi, if a condo project is being en-bloc, how is the share of land or the amount of sales value being calculated?

[maisonjai]

The Singapore Institute of Surveyors recommends the following methods:-

Share value Method: the apportionment for each unit is proportionate to its unit’s share value in relation to the total share value for the development.
An average of the strata floor area and the share value method – the apportionment is according to the unit’s strata floor area in relation to the total strata floor area. The figures derived from the share value Method and floor area method are then averaged by taking 50% of each method.
General valuation – a value is estimated for each typical unit. This valuation is on an individual market basis, ignoring collective sale potential, floor level, facing etc.. The valuation of each typical type of unit would vary according to the floor area of each unit on the basis that the larger the unit, the lower the value per square foot. The apportionment for each unit would then be in proportion to that unit’s value in relation to the total value for the whole development.
The combination of general valuation and share value Method – a value is estimated for a typical unit of each type as in (c), and the total value is computed. This total value is then deducted from the sale price, and the balance is distributed to each unit according to each unit’s share value as a proportion of the total share value for the development

[Douk]

Hi, if a condo project is being en-bloc, how is the share of land or the amount of sales value being calculated?
There is no standard calculation of LV/SV proportion. The agent represents the enbloc property will recommend the "fair calculation, for all unit type, and owners to approve it.

[carbuncle]

lajia sitting on a goldmine?? keke

[lajia]

lajia sitting on a goldmine?? keke

No la, looking for a goldmine...

[EBD]

No la, looking for a goldmine...

rare that you will find one.

In rising market, by the time you get your money - which is a long drawn out process, any advantage you would have had from colllective sale would be removed as the rest of the market has increased.

[Leeds]

Most of the older developments with large land to Gross Floor Areas (GFA) ratio were already sold during the hey days. What are left now are marginally ones where the premium to selling collectively verse individually is no more than 40%. By the time the estate is sold, the premium could well erode to only 20%. For those having to pay SSD, in most cases, it is not worthwhile to buy into development with so call "en bloc" potential. What if en bloc never materialize and you ended up with a "highly priced" asset with low yield.

[carbuncle]

Enbloc should just remain as what it is - a windfall. To believe or espouse it as an investment strategy or objective is akin to playing a game at MBS casino...