http://www.straitstimes.com/archive/...-june-20150530

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Amber Park condo goes en bloc in June

Published on May 30, 2015 1:29 AM


THE residential collective sale market may be quiet but this is not deterring residents of Amber Park condominium in Katong.

They are putting it up for tender by going en bloc on June 7 with a reserve price of $743.9 million. This works out to a land cost of $1,225 per sq ft per plot ratio, given the 213,676 sq ft site with a plot ratio of about 2.8.

"It is probably one of the last rare pieces of large freehold sites you will get on the market," said marketing agent Michael French, managing director of Asia Premier Property Consultants.

Assuming an average unit size of about 753.5 sq ft, the site could yield 794 units, far more than its current 200, he added.

Completed in 1986, it comprises 192 units of 1,744 sq ft each and eight two-storey penthouses of 3,789 sq ft each.

This is its third attempt at going en bloc. The first in 2009 was hampered by the global financial crisis; the second in 2011 came very close. While over 80 per cent of owners by share value were in favour, fewer than 80 per cent were in favour by strata area - 79.6 per cent, or one unit short, said Mr Lim Lian Seng, chairman of the collective sale committee.

Why do they want to sell? Mr Lim said: "This development is very old, about 30 years old, and the infrastructure is giving way. Also, the market is very depressed at this time, so if they sell individually, they would get much less."

A 1,744 sq ft unit was sold last month for $2.14 million, lower than the $3.6 million the owner of a typical unit could get if going en bloc is successful.

Mr Lim, a chartered surveyor and retired senior civil servant, said the reserve price is attractive. Assuming construction fees of about $300 psf, professional fees and other costs of about $150 psf, this could mean a breakeven cost to a developer of $1,674 psf.

Nearby, Amber Towers - the site of upcoming Amber Skye - was sold en bloc at $1,118 psf in 2011. It is smaller at 40,708 sq ft and, as of April 30, its developers have sold 10 of 109 units at an average of $2,020 psf.

"We are selling land for future development, in five years or longer, depending on who buys it and if they require a Qualifying Certificate," said Mr Lim. "If it is bought by a local company, it can still hold the land and time it as the Thomson-East Coast MRT Line starts running."

Amber Park will be a less than five minutes' walk to the future Amber MRT station on the line.

Some owners like the condo's location so much, they have requested first right of choice when the new project is launched.

JLL international director Karamjit Singh said Amber Park's positive attributes include a central location and sea views from the high floors. But, he added, "the timing of the sale is not the best as the residential market as a whole is feeling the collective weight of the cooling measures".

The residential collective sale market has been lacklustre so far owing to a mismatch between sellers and developers' expectations, said Chestertons executive director and research head Elaine Chow.

"With no indication of cooling measures being lifted in the near future, developers are now more prudent with their bid prices."

This is to ensure that the future selling price of units will be palatable to home buyers, she said. The tender closes on July 16.

RENNIE WHANG