Elias Green condo targeting en bloc

But some observers are wondering if reserve price may be too high

Wed, May 09, 2018

Yunita Ong

HOME owners at the sprawling Elias Green condominium in Pasir Ris may be the next to be on the collective sale market - but some observers wonder if their reserve price may be too high.

If a buyer is willing to cough up S$780 million, owners at the 419-unit development could each walk away with S$1.7 million to just below S$2 million.

Alan Loh, the chairman of the collective sales committee, told The Business Times that the 516,877 sq ft development will begin collecting signatures on May 12. But he said it is likely that they will reach the required 80 per cent consent since 83 per cent of owners have already paid up fees meant for expenses such as lawyers and property valuation.

The development, which was completed in 1994, has an allowable gross floor area (GFA) of 723,627 sq ft and a plot ratio of 1.4, which translates to S$1,078 per square foot per plot ratio.

No development charges are expected to be payable based on the current 1.4 plot ratio payable but there will be a lease top up premium of an estimated S$60 million. PropNex Realty is the marketing agent.

"The reserve price is set high taking into consideration that the developer will likely want to increase the plot ratio," said Mr Loh. Developments in the immediate surrounding have a higher plot ratio of 2.1 or higher.

He also believes that the estate's large size as well as its proximity to amenities such as Changi Airport and Pasir Ris Park will be a draw to developers.

Still, analysts voiced concerns. Ku Swee Yong, chief executive of International Property Advisor, said: "The price seems high, given that it is right next to a very busy highway."

A developer will likely have to launch at least at S$1,450 psf upwards, he added.

Nicholas Mak, executive director of ZACD Group, said: "There has been a lack of new supply in the vicinity since Coco Palms' launch in 2014, but the asking price of Elias Green may turn off some potential developers."

He pointed out that the average transacted price of Coco Palms over the past 16 months is S$1,094 psf.

Changi Garden, which is also in the Pasir Ris area, was sold to Chip Eng Seng Corp for S$248.8 million or S$888 per sq ft per plot ratio (psf ppr) in October 2017.

Besides Elias Green, other large sites eyeing a collective sale include Mandarin Gardens, which is at over a million sq ft and has an asking price of S$2.48 billion, as well as ex-HUDC Braddell View, which stands at 1.124 million sq ft and is said to be asking for S$2.08 billion.

The Dairy Farm's asking price for their 750,019 sq ft freehold project is said to be in excess of S$1.68 billion, while the over-893,000 sq ft Pine Grove is fewer than 30 signatures away from reaching their 80 per cent mandate.

Separately, another 99-year condominium on the other side of the island will soon be on the market.

Completed in 1970, the 120-unit Lakeside Apartments near Chinese Gardens has recently reached its 80 per cent mandate subject to verification by lawyers, and will launch its tender soon.