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Thread: Normanton Park sold en bloc for S$830.1 million

  1. #1
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    Default Normanton Park Condo to go En-Bloc

    Proof of concept for Leasehold 99 sales.

    61 Years left, targeted selling price of $605 PSF PPR.



    Normanton Park condo to go en bloc, largest local deal since 2007 if successful


    Normanton Park condominium has been put up for collective sale, with a reserve price in the region of $840 million. ST PHOTO: CHEW SENG KIM


    Published1 hour ago

    Wong Siew Ying


    SINGAPORE - Normanton Park condominium located near Kent Ridge Park will be put up for collective sale next Thursday (Oct 22) after more than 80 per cent of the owners agreed to the sale.

    There are 488 units in the condominium project - made up of eight low-rise blocks and five 23-storey towers.

    The Straits Times understands that the reserve price is in the region of S$840 million, making it one of the largest en bloc deals to be launched in Singapore in recent years.

    Mount Everest Properties, which is marketing the collective sale said this translates to a land cost of about S$605 per sq ft per plot ratio.

    Size of the units in the development range from 1,270 sq ft to 1,550 sq ft, and the marketing agent said each owner will stand to pocket S$1.6 million to S$1.7 million on average if the deal goes through.

    Normanton Park, a 99-year leasehold project, has 61 years remaining on its tenure.

    "We will be speaking to some developers with the objective of getting them to form a consortium to invest and to bid for this site together," said project consultant Dillon Loi of Mount Everest Properties.

    Mr Loi said part of the strategy includes reaching out to foreign developers, including those in China.

    Under the Urban Redevelopment Authority's Master Plan 2014, the over 660,000 sq ft site is zoned for residential use with a 2.1 plot ratio.

    The plot could potentially yield 1,388 residential units based on an average size of 1,000 sq ft.

    The trend of ageing population and rising demand for quality healthcare could provide a fillip to sales.

    "We are actually very near to NUH and Alexandra Hospital as well, so a great angle is to brand the new development here as a wellness village with medical facilities," added Mr Loi.

    To this end, the marketing agent intends to approach private medical groups in Singapore to team up with the property developer to drive the proposal.

    The tender for the collective sale will close on Jan 19.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Luckily I did not buy this. Recent transactions hover around 900 PSF. With SSD included, it might be very hard to break even.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Kelonguni View Post
    Luckily I did not buy this. Recent transactions hover around 900 PSF. With SSD included, it might be very hard to break even.
    My bad. I think will still gain even with 16% SSD. Cos is based on new plot ratio.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Is anyone here staying at Normanton park?

    I would like to know if any owner is keen or not keen on en bloc and will you be looking at brand new or resale units in the same location etc.

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    If there is a buyer for such a big development, it will sure make the surrounding property to appreciate and make people interested in nearby properties especially The Interlace. The government instead relax the cooling measure, they may introduce more measure to curb the property boom.

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    Quote Originally Posted by bolster View Post
    If there is a buyer for such a big development, it will sure make the surrounding property to appreciate and make people interested in nearby properties especially The Interlace. The government instead relax the cooling measure, they may introduce more measure to curb the property boom.
    It is just district 4 or 5.

    Right now we are at negative 8%. How can 1 development affect nationwide positive more than 8%?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    This enbloc will not go through for sure...
    No developers will dare to commit to such a big project!
    Where to find so many buyers with all the absd n tdsr still in place?
    It's unlikely gahmen will remove all these measures soon.

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    Quote Originally Posted by fiat500 View Post
    This enbloc will not go through for sure...
    No developers will dare to commit to such a big project!
    Where to find so many buyers with all the absd n tdsr still in place?
    It's unlikely gahmen will remove all these measures soon.
    Maybe hospital group will buy?

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    Quote Originally Posted by fiat500 View Post
    This enbloc will not go through for sure...
    No developers will dare to commit to such a big project!
    Where to find so many buyers with all the absd n tdsr still in place?
    It's unlikely gahmen will remove all these measures soon.
    If the concept is wellness retirement village, it will for sure go through.

    605 PSF, no need top up. Add 400 PSF for construction. Earn 200 PSF sell you 1200 PSF for 55 to 60 year LH new property at Alexandra. Very suitable for Yowetan.

    Sure sell out like Hillford.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Kelonguni View Post
    If the concept is wellness retirement village, it will for sure go through.

    605 PSF, no need top up. Add 400 PSF for construction. Earn 200 PSF sell you 1200 PSF for 55 to 60 year LH new property at Alexandra. Very suitable for Yowetan.

    Sure sell out like Hillford.
    I think this is a fabulous idea.

    Like hillford, just build smallest studio at 300sqft each for 60 years lease at that land, sure sell. Can even sell at $2000 psf or more. Ask NUH to extend their medical hub to that condo and circle line mrt extend their escalator till the entrance, sure sell out within a day.

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    Quote Originally Posted by bolster View Post
    I think this is a fabulous idea.

    Like hillford, just build smallest studio at 300sqft each for 60 years lease at that land, sure sell. Can even sell at $2000 psf or more. Ask NUH to extend their medical hub to that condo and circle line mrt extend their escalator till the entrance, sure sell out within a day.
    It's one way for the private property retirees to downgrade in a place they are comfortable with. They may not need large houses once their children get their places, and they may not be able to buy a HDB as well. At that stage, some might not even need longer leases.

    We can bury our heads in the sand but the population will still continue to age. Plans must be made for every segment of Singapore.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by bolster View Post
    I think this is a fabulous idea.

    Like hillford, just build smallest studio at 300sqft each for 60 years lease at that land, sure sell. Can even sell at $2000 psf or more. Ask NUH to extend their medical hub to that condo and circle line mrt extend their escalator till the entrance, sure sell out within a day.
    Developers can be greedy but not that greedy. Nearby developments with 99 years or FH status are not even at 2KPSF.

    Average $200 PSF profit is enticing enough I feel.

    $1,200 PSF is a decent amount and I am sure there will be subscribers for a new property at that location. In fact, if Normanton was not so old, I would have bought a unit there.

    New units' quantum can range from say 500K (400 sqft) to 1.1 Mil (1000 sqft), factoring in differences between smaller and family-sized units. The target sales period is in 2021 (5 years later).
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Selling price of $605 psf-ppr ??

    People are mistaken. The selling price is $800 psf-ppr, when you figure in an additional S$300 million for differential premium (for maximising gross floor area and a lease top-up to 9 years.

    See Business Times report:

    Normanton Park up for collective sale

    But consultants note that investment quantum, size of site are too large for developers' current appetite


    By

    Lynette [email protected]@LynetteKhooBT

    Oct 16, 20155:50 AM

    Singapore

    NORMANTON Park condominium, located near Kent Ridge Park, will be put up for collective sale next Thursday after the requisite 80 per cent majority consent was secured from the owners.

    But consultants were quick to rain on the parade, saying that the site may be too big for the current appetite of developers, whose risk of holding large sites is exacerbated by the additional buyers' stamp duty that applies to unsold units five years after the land purchase date.

    The hefty reserve price of S$840 million may make it a tough sell, said SLP International executive director Nicholas Mak, who estimates that the differential premium for maximising gross floor area and a lease top-up to 99 years amount to an additional S$300 million.

    According to marketing agent for the collective sale Mount Everest Properties, the reserve price translates to around S$800 per square foot per plot ratio (psf ppr), inclusive of the differential premium and the lease top-up. If an adjoining state land is included, the figure will drop to below S$800 psf ppr

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    Agree with your calculations regarding top up.

    But the proposal wrapped around wellness village and healthcare with AH and NUH seems to be plausible as well.

    In essence, developers will only come in if Govt allows no top up of lease to 99 years. To market as a retirement condo like Hillford. This appears the only way at the moment to resolve the deadlock between buyers and sellers.

    But I agree that the enbloc may not go through. We will have to be patient on that.


    Quote Originally Posted by victorcpwong View Post
    Selling price of $605 psf-ppr ??

    People are mistaken. The selling price is $800 psf-ppr, when you figure in an additional S$300 million for differential premium (for maximising gross floor area and a lease top-up to 9 years.

    See Business Times report:

    Normanton Park up for collective sale

    But consultants note that investment quantum, size of site are too large for developers' current appetite


    By

    Lynette [email protected]@LynetteKhooBT

    Oct 16, 20155:50 AM

    Singapore

    NORMANTON Park condominium, located near Kent Ridge Park, will be put up for collective sale next Thursday after the requisite 80 per cent majority consent was secured from the owners.

    But consultants were quick to rain on the parade, saying that the site may be too big for the current appetite of developers, whose risk of holding large sites is exacerbated by the additional buyers' stamp duty that applies to unsold units five years after the land purchase date.

    The hefty reserve price of S$840 million may make it a tough sell, said SLP International executive director Nicholas Mak, who estimates that the differential premium for maximising gross floor area and a lease top-up to 99 years amount to an additional S$300 million.

    According to marketing agent for the collective sale Mount Everest Properties, the reserve price translates to around S$800 per square foot per plot ratio (psf ppr), inclusive of the differential premium and the lease top-up. If an adjoining state land is included, the figure will drop to below S$800 psf ppr
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Default Normanton Park condo up for collective sale

    http://www.straitstimes.com/business...ollective-sale

    Normanton Park condo up for collective sale

    Oct 16, 2015

    Wong Siew Ying


    The lacklustre property market enjoyed a shot of adrenaline yesterday with news that the sprawling Normanton Park condominium is up for a collective sale with an asking price of around $840 million.

    The ambitious move by the owners of the 38-year-old estate near Kent Ridge Park seems to fly in the face of prevailing market trends, which all point to slowing sales.

    Only 341 new private homes were sold last month, a striking fall of 33.5 per cent from the 513 units moved in August, according to the Urban Redevelopment Authority yesterday.

    The 488-unit Normanton Park would be the biggest collective sale in eight years if it goes through, but experts are sceptical.

    SLP International Property Consultants research head Nicholas Mak said it will be "a tough sell". "The large size and investment quantum are deemed to be riskier by developers," he said.

    The 99-year leasehold estate is on a sprawling 660,000 sq ft site with a reserve price said to be in the region of $840 million. A sale at that level would make it the largest collective deal since Farrer Court was sold at $1.3 billion and Leedon Heights at $835 million in 2007.

    Marketing agent Mount Everest Properties said a developer would have to stump up an additional $300 million or so to top up the lease, which has 61 years to run, and account for the development charge. Factoring in these costs, the overall price would work out to about $820 per square foot per plot ratio, as the site has a plot ratio of 2.1. Each owner could stand to pocket $1.6 million to $1.7 million on average.

    Businessman Anthony Chai, 58, who owns a second-floor unit, had hoped his home would fetch more money, but went along with the sale decision as the estate is ageing."If the guy upstairs turns on his shower, there is a leak in my roof because the sealants have already gone bad after so many years."

    There has been only one large collective sale this year, when SIN Capital Group bought Thong Sia Building, along Bideford Road, for $380 million in July.

    Amber Park, Spring Grove and Riviera Point are among the many that tried their luck in recent years but failed to find a buyer.

    "We will be speaking to some developers with the objective of getting them to form a consortium to invest and to bid for this site," said project consultant Dillon Loi of Mount Everest Properties. Part of the strategy involves reaching out to foreign developers, including those in China, he added.

    The tender for the Normanton Park sale closes on Jan 19.

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    Default Normanton Park up for collective sale

    http://www.businesstimes.com.sg/real...ollective-sale

    Normanton Park up for collective sale

    But consultants note that investment quantum, size of site are too large for developers' current appetite

    By Lynette Khoo

    [email protected]

    @LynetteKhooBT

    Oct 16, 2015


    NORMANTON Park condominium, located near Kent Ridge Park, will be put up for collective sale next Thursday after the requisite 80 per cent majority consent was secured from the owners.

    But consultants were quick to rain on the parade, saying that the site may be too big for the current appetite of developers, whose risk of holding large sites is exacerbated by the additional buyers' stamp duty that applies to unsold units five years after the land purchase date.

    The hefty reserve price of S$840 million may make it a tough sell, said SLP International executive director Nicholas Mak, who estimates that the differential premium for maximising gross floor area and a lease top-up to 99 years amount to an additional S$300 million.

    According to marketing agent for the collective sale Mount Everest Properties, the reserve price translates to around S$800 per square foot per plot ratio (psf ppr), inclusive of the differential premium and the lease top-up. If an adjoining state land is included, the figure will drop to below S$800 psf ppr.

    Normanton Park is a housing estate reserved for military personnel and their families built in 1977, which has been "demilitarised" and gained condominium status only in 2012. The estate is on a large site of about 661,000 sq ft with a balance lease term of about 61 years. It comprises 448 units (1,668-1,776 sq ft) in eight low-rise blocks and five 23-storey towers. Owners controlling at least 80 per cent of the development's share value and strata area have agreed to the en bloc sale.

    The future development on the site can rise up to 24 storeys. Under the URA's Master Plan 2014, the site is zoned for residential use with a 2.1 plot ratio. This translates into a potential project of 1,388 units based on an average unit size of 1,000 sq ft.

    "The current property measures has curbed housing demand and developers' appetite for large sites," Mr Mak said. He noted that the large size and investment quantum of the site means relatively higher risk for developers, who "may end up putting many eggs in one basket" when it's taking a long time now to sell all units in a mega project.

    Elsewhere, Shunfu Ville, a 358-unit residential project in Upper Thomson, is also up for collective sale with a minimum price of S$688 million. The estate was built in the late 1980s by the former Housing & Urban Development Company (HUDC) and privatised in 2013.

    Past mega projects built on en bloc sites include the 1,715-unit D'Leedon, which sits on the former Farrer Court estate which was acquired for a record S$1.3 billion in June 2007, and the 1,040-unit The Interlace, which sits on the former Gillman Heights that was bought for S$548 million in May 2009. Developer CapitaLand was seen cutting prices for some unsold stock in D'Leedon and The Interlace after the projects obtained their temporary occupation permits.

    Chesterton Singapore managing director Donald Han noted that pure residential collective sale activity has been quiet in the last three years. "Big ticket ones in excess of S$300 million will have to compete with government sales of sites which offer fresh 99-year leases and is a more straightforward process," he said.

    In June, a 99-year leasehold site at Dundee Road was sold to HY Realty in a government land sale for S$871 psf ppr, while a government site at Lorong 6/Lorong 4 Toa Payoh fetched S$755.30 psf ppr from a consortium led by Evia Real Estate.

    Based on Normanton Park's estimated reserve price, the owners stand to receive over 50 per cent more of what they would have obtained from selling their units individually. The tender exercise for Normanton Park closes on Jan 19.

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    Default Normanton Park to be put up for en bloc sale at a minimum S$800m

    Normanton Park trying for another go at selling en bloc

    JUL 1, 2017

    Grace Leong


    The owners of Normanton Park condominium are trying again to launch a collective sale.A meeting scheduled for next Saturday will aim to form a sales committee for the 488-unit project near Kent Ridge Park, which failed at a collective sale attempt in 2015.

    But at least 30 per cent of the owners must be present or send a proxy for the meeting to be valid. "The sales committee will have to shortlist some lawyers, marketing agents and property consultants, and seek their proposals, said Mr S.S. Chopra, a retired navy colonel and chairman of the Normanton Park MCST.

    "The reserve price and method of apportionment has to be decided during another EOGM (extraordinary general meeting), which we plan to hold on July 29."

    Once these are approved, the next step will be to finalise a collective sales agreement and get 80 per cent of owners to sign up so the tender process can start.

    Normanton Park, a 99-year leasehold project, has 59 years left on its tenure. Under the Urban Redevelopment Authority's Master Plan 2014, the more than 632,000 sq ft site is zoned for residential use with a 2.1 plot ratio.

    Mr Chopra told The Straits Times yesterday the estate is having a second go at a collective sale because "we received advice that the time is now right".

    There have been four collective sales reaping slightly over $1.5 billion so far this year, compared with three for the whole of last year totalling about $1 billion.

    Normanton Park was first put up for collective sale in October 2015. The Straits Times had reported that the reserve price was around $840 million but there were no bids.

    "The feedback we got was that the sentiment was not right for a (sale) en bloc of such a large estate then. But the property remains a good buy," Mr Chopra said.

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    Default Normanton Park to be put up for en bloc sale at a minimum S$800m

    Normanton Park to be put up for en bloc sale at a minimum S$800m

    Florence Regency and Amber Park condo also cross 80% approval for collective sale

    August 10, 2017

    Lynette Khoo


    NORMANTON Park condominium is slated to be launched for collective sale on Aug 22 at a minimum price of S$800 million after more than 80 per cent of owners by share value and strata area approved the collective sales agreement (CSA) by Wednesday.

    It is probably a record for a project of this scale with 488 units to garner sufficient signatures from owners within 11 days, said Ian Loh, head of investment and capital market at Knight Frank, which is marketing the project.

    The estimated differential premium for intensification of the site is S$225.3 million, while the lease top-up is estimated to cost another S$220.64 million. This will translate to a land rate of S$898 per square foot per plot ratio (psf ppr), said Mr Loh.

    Owners are expected to pocket gross profit of between S$1.62 million and S$1.8 million.

    Elsewhere, privatised HUDC estate Florence Regency in Hougang and freehold Amber Park condominium have also crossed the 80 per cent consensus for their collective sales agreements, BT understands.

    Both projects are marketed by JLL, which declined to comment on their reserve prices. But minutes of a collective sales committee meeting for the 336-unit Florence Regency this month released on a blog shows the reserve price being raised to S$600 million.

    For Normanton Park, obtaining the requisite approval for the CSA in 11 days is considered a major feat. "This shows that a majority of the owners are in complete agreement with the terms in the CSA and are further keen to see the en bloc successfully done as soon as possible," said SS Chopra, who chairs the collective sales committee.

    In fact, some 30 per cent was obtained on July 29, the same day the CSA was approved by the general body unanimously at an extraordinary general meeting, added Mr Chopra, a retired navy colonel.

    This is the second attempt at an enbloc sale by owners of Normanton Park, after their first attempt in October 2015 with the same reserve price.

    The 99-year leasehold project has 59 years left on its tenure. Under the Urban Redevelopment Authority's Master Plan 2014, the 660,999 square foot site is zoned for residential use with a 2.1 plot ratio.

    Normanton Park is near Kent Ridge Park, the National University of Singapore, National University Hospital and businesses in the one-north development. Future owners or occupiers of the new project on the site would likely be professionals working in the vicinity as well as families whose children are studying in the education institutions nearby, along with those who would love to frequent a park, Mr Chopra said.

    Mr Loh also pointed out that there is no comparable site like Normanton Park for high-rise residential development available for sale now, so there is no competing supply in the near term.

    So far this year, there have already been seven successful collective sales worth S$2.5 billion; for the whole of last year, only three deals worth S$1 billion were closed.

    Market watchers expect another few billion dollars worth of deals to close this year as the collective sales market roars back to life, fuelled by transactions-led property recovery and limited land up for grab in state tenders.

    The en bloc fever has prompted more projects to kick-start the collective sales process.

    The latest to hop onto the bandwagon are Sutton Place, a 44-unit condominium off Farrer Road, and Faber Garden, a 233-unit freehold condominium near Upper Thomson Road. Both are in the midst of appointing their marketing agents.

    Hawaii Towers, a 135-unit freehold development at Meyer Road, is said to be trying its luck again at a collective sale.

    Those already put up for en bloc tender include the 12-unit freehold Villa D'Este condominium in prime District 10 where owners are asking for S$96 million, as well as the 12-unit freehold Dunearn Court in the prime District 11 where owners are asking for S$38.8 million.

    At 560-unit Tampines Court, owners of the privatised HUDC property are asking for S$960 million, which could be the largest since Farrer Court fetched the highest price of S$1.34 billion in 2007.

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    This is super fast. The SPs know if they cannot have it done this round, chances will be almost impossible already.
    Time is essence.

    All developers are spoilt with choices now

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    Quote Originally Posted by Laguna View Post
    This is super fast. The SPs know if they cannot have it done this round, chances will be almost impossible already.
    Time is essence.

    All developers are spoilt with choices now
    It's a record. The owners know that they wont be able to get this price if they sell on their own. If I sit in the SC, I would have lowered the RP by 15-25%. Given the large quantum, inaccessibility for non-drivers and not many good primary schools nearby, I find it hard for any developer to digest the fact that they have to sell thousands of units there. As such, with no offense to any owners there, I think given the choices that developer has to fill their landbank, there are plenty of better quality plots that they can pick from.

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    IMO, now, for all the HUDC SP going for enbloc, they are expecting at least $1.7m an unit or 50% premium.
    EunosVille was a record, at $2.3m which is more than Farrer Court.

    Let's see Laguna Park, perhaps they will be asking for $2.3m in view of their seaview and upcoming MRT, but they will also rule out all bidders at this asking price.

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    Quote Originally Posted by Laguna View Post
    IMO, now, for all the HUDC SP going for enbloc, they are expecting at least $1.7m an unit or 50% premium.
    EunosVille was a record, at $2.3m which is more than Farrer Court.

    Let's see Laguna Park, perhaps they will be asking for $2.3m in view of their seaview and upcoming MRT, but they will also rule out all bidders at this asking price.
    EuonsVille's proximity to the mrt is probably the reason why they got that price. In comparison to Farrer Court, that en bloc deal was almost a decade ago, so in terms of price, I think EunosVille SP managed to carve out a fair deal.

    I am not entirely sure about Laguna Park will get it in current market conditions because of the sheer size of the quantum that includes the RP, number of units and timeframe involved. I can also see why there is probably much higher expectations from SP on the RP given the location and its status. Further, my view also stems from the fact that it feels to me that people living in that vicinity tends to be rather sticky (or in simple terms, "emotionally attached"). I know of a friend personally who refuse to agree to the en bloc sale even though they bought it for more than 30 years ago. Again, no offense, but if they do succeed, it will be a major feat accomplished.

    My 2 cents, of all the remaining HUDC remaining, Chancery Court probably stands the best chance for a great en bloc price. Lower quantum, CCR status, and very good primary schools vicinity. Of course, no sea view

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    if a developer bids 900psf+ and reverses the unit sizes and psf at the interlace (e.g. interlace 1400 sq ft sell at 1100psf change to new normanton 1000 sq ft at 1500psf lol), i think it may still attract bidders.

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    Quote Originally Posted by bargain hunter View Post
    if a developer bids 900psf+ and reverses the unit sizes and psf at the interlace (e.g. interlace 1400 sq ft sell at 1100psf change to new normanton 1000 sq ft at 1500psf lol), i think it may still attract bidders.
    Indeed, their marketing agent already showcasing the "potential windfall" that is 1,380 units of 1,000 sq ft each. However, selling at $1,500 psf is going to be a stretched because condos nearby Normanton Park are all trading between $800 to $1000 psf, and most of them are in better locations (i.e. near Pasir Panjang port where they clean up, nearer to MRT).

    FYI - the nearby condos are Vista Park, Buona Vista Gardens, Bayville and Buona Lodge, and the Peak.

    It does not mean that a condo is old, they will en bloc. One of the major factors in the price difference between new launch vs resale. It is always going to be challenging when you want to sell thousands of units in a relatively less mature estate. If I am only given Normanton and TC to buy as a developer, I will go for TC because new launch is trading higher and secondly, its in a mature estate (more demand). Of course, if I am given more choices other than those two, I will choose others i.e. Euonsville :P

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    Developers have some idea now of what's going to be available going fwd. It would be interesting to see how it goes for Normanton Pk. Like TC, they are a big site and have failed in the past. I feel they have a more " atas" location although I agree there are accessibility problems. So far TC, is the first big site in this round. In the pipeline we have others coming like Laguna Pk, Lagoon View and Ivory Heights. They are all getting started in the process so Developers can pick and may be more selective.Since TC ended up being a " one horse race" this may set the pattern for mega sites. I agree Chancery has the best potential for location and size. Florence Regency which should be launching soon too , is also likely to be more palatable.
    So while en bloc fever may be back, not all sites may be looked upon favourably.

  26. #26
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    Quote Originally Posted by Tulip09 View Post
    Developers have some idea now of what's going to be available going fwd. It would be interesting to see how it goes for Normanton Pk. Like TC, they are a big site and have failed in the past. I feel they have a more " atas" location although I agree there are accessibility problems. So far TC, is the first big site in this round. In the pipeline we have others coming like Laguna Pk, Lagoon View and Ivory Heights. They are all getting started in the process so Developers can pick and may be more selective.Since TC ended up being a " one horse race" this may set the pattern for mega sites. I agree Chancery has the best potential for location and size. Florence Regency which should be launching soon too , is also likely to be more palatable.
    So while en bloc fever may be back, not all sites may be looked upon favourably.
    I cant disagree with you that Normanton area has a more "atas" feel. Is that enough of a "pull" factor for new buyers in that area? I am not sure. There are plenty of "atas" locations that may be trading 1200-1500 psf in resale market. While you have mentioned above are all HUDC that are leashold, there are plenty of private freehole sites that are coming to the en bloc market. Those old private estates that are 20-30 years old, quantum of 500 mil or less, near MRT and near good primary schools will probably stand a better chance.

    The fact that there was only one developer bidding for TC with no land-hungry/diversification foreign developer bidding, is a signal to the market that TC isn't as attractive as a site; and in a more philosophical way of concluding the TC tender: every piece of land has an intrinsic value. So for those trying to buy old HUDC think twice!

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    Quote Originally Posted by patches View Post
    I cant disagree with you that Normanton area has a more "atas" feel. Is that enough of a "pull" factor for new buyers in that area? I am not sure. There are plenty of "atas" locations that may be trading 1200-1500 psf in resale market. While you have mentioned above are all HUDC that are leashold, there are plenty of private freehole sites that are coming to the en bloc market. Those old private estates that are 20-30 years old, quantum of 500 mil or less, near MRT and near good primary schools will probably stand a better chance.

    The fact that there was only one developer bidding for TC with no land-hungry/diversification foreign developer bidding, is a signal to the market that TC isn't as attractive as a site; and in a more philosophical way of concluding the TC tender: every piece of land has an intrinsic value. So for those trying to buy old HUDC think twice!
    You are right I was only talking about HUDC to compare " apples" with " apples". No doubt FH sites that are getting rarer these days , will be more attractive. However I think they will also be pricing it accordingly. I mean the owners who put it up for sale. But the developer doesn't have to TOP up lease so that will be factored in too. In the years ahead as leases run down we will get to see the LH effect of those that don't go en bloc. So far , it hasn't been much of a concern as the LH properties have still a long way to go.

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    Quote Originally Posted by patches View Post
    Indeed, their marketing agent already showcasing the "potential windfall" that is 1,380 units of 1,000 sq ft each. However, selling at $1,500 psf is going to be a stretched because condos nearby Normanton Park are all trading between $800 to $1000 psf, and most of them are in better locations (i.e. near Pasir Panjang port where they clean up, nearer to MRT).

    FYI - the nearby condos are Vista Park, Buona Vista Gardens, Bayville and Buona Lodge, and the Peak.

    It does not mean that a condo is old, they will en bloc. One of the major factors in the price difference between new launch vs resale. It is always going to be challenging when you want to sell thousands of units in a relatively less mature estate. If I am only given Normanton and TC to buy as a developer, I will go for TC because new launch is trading higher and secondly, its in a mature estate (more demand). Of course, if I am given more choices other than those two, I will choose others i.e. Euonsville :P

    Show me which new condo of size 1,000 sqf (even if LH) near to Normanton goes for $800-1000 psf? i agree it is conceivable to sell 1000 sqf at $1500 psf for this location given the proximity to Science Park, xxx-polis and 1-North. I'm vested in this area (not normanton) so I'm bias but i think there is potential for this site. A short scoot or bus ride (internal or SBS) and you are at circle line Kent Ridge MRT. If it's $1500 psf here, I'll grab!

  29. #29
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    Quote Originally Posted by patches View Post
    Indeed, their marketing agent already showcasing the "potential windfall" that is 1,380 units of 1,000 sq ft each. However, selling at $1,500 psf is going to be a stretched because condos nearby Normanton Park are all trading between $800 to $1000 psf, and most of them are in better locations (i.e. near Pasir Panjang port where they clean up, nearer to MRT).

    FYI - the nearby condos are Vista Park, Buona Vista Gardens, Bayville and Buona Lodge, and the Peak.

    It does not mean that a condo is old, they will en bloc. One of the major factors in the price difference between new launch vs resale. It is always going to be challenging when you want to sell thousands of units in a relatively less mature estate. If I am only given Normanton and TC to buy as a developer, I will go for TC because new launch is trading higher and secondly, its in a mature estate (more demand). Of course, if I am given more choices other than those two, I will choose others i.e. Euonsville :P
    in case you haven't noticed, there are very few sites which are sold cheaply these days. psf for brand new 99 year leaseholds are also are also easily exceeding the old freeholds nearby simply because the units have been shrunk and people have been snapping these up because of a variety of reasons previously discussed in other threads for e.g. low quantum, time lag till completion to raise cash etc etc.

    for the land sales e.g, recent sites would be 2 woodleigh sites at 1100psf (expect 1600 to 1900psf selling price). serangoon garden site at 965psf (expect >1600psf selling price). even the serangoon ville site nearby was sold for about 835psf (minimum selling price 1400psf). queenstown 1038psf (expect >1700psf), eunosville 908psf (good price as prices moved up after this), also minimum 1500psf. i had mentioned previously that u can see from the sales data monthly, 10xxpsf and 11xxpsf mass market new launches are being snapped up rapidly. le quest recently was able to sell at 1280psf easily. given the lack of mass market sites sold recently and at low prices, it looks like TC will be sold at 12xxpsf.

    i would think NP is definitely more than a mass market land site and 900psf is not a ridiculous price. at present, capitaland has no landbank and the ceo mentioned: CapitaLand to be 'a bit more aggressive' in land bidding

    CapitaLand president and chief executive Lim Ming Yan said that the property firm wants to be "a bit more aggressive in its approach" to the residential market in its home base.

    "We are prepared to be more aggressive, but we remain disciplined," he said.

    "If you are hoping for a bargain purchase in the Singaporean residential market, then you will never get anything. You have to put in your best attempt given your view of the outlook of the market, and not take the view that you can keep a lot of reserves, put in a price and hopefully you will get it at bargain price. It will never happen."

    http://www.straitstimes.com/business...dding-says-ceo

    given their experience with interlace nearby, i think they know how to position their units uniquely. with the previous ceo gone, building small units is now possible for them. otherwise, it would be impossible for them to compete if they still want to build big units as the psfs are not favourable.

  30. #30
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    Quote Originally Posted by HP65 View Post
    Show me which new condo of size 1,000 sqf (even if LH) near to Normanton goes for $800-1000 psf? i agree it is conceivable to sell 1000 sqf at $1500 psf for this location given the proximity to Science Park, xxx-polis and 1-North. I'm vested in this area (not normanton) so I'm bias but i think there is potential for this site. A short scoot or bus ride (internal or SBS) and you are at circle line Kent Ridge MRT. If it's $1500 psf here, I'll grab!
    Fyi, I am not bias against this location, frankly speaking, I am a 10-minutes car ride away from Normanton Park condo.

    Also, to add clarity in my argument, I should be clearer; secondary resale market. If its $1500 psf, I will bid for some of the older condos in River Valley such as Valley Park that even traded $1200-$1300 for 1000 sqf and below. This is simply just one of the many CCR older condos that are trading in that sort range.

    For the $800-1000 psf, you can refer to the link below. While I stay quite near to Normanton, I am no expert in this area, in fact, I would put higher value to the region nearer to Pasir Panjang for the Southern Front development.

    http://www.stproperty.sg/condominium...e-search/10745

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