On 29 October 2017, another commercial property on Singapore’s shopping bel Orchard Road joined the enbloc trend in Singapore.
At its 3rd attempt for enbloc, Tanglin Centre is gathering the required support to go for a collective sale of the building. The 170-odd owners of the strata-titled development has previously failed on 2 attempts in 2011 and 2014 for enbloc.
The 47 year old commercial building has a total of six storey blocks of shops, restaurants and medical and a 12 storey office tower. In 2011, the reserve price of 1.25 billion was not met. This would work out to $4,200 per square feet of floor area.
Other commercial buildings Goldhill Centre in Novena and Katong Shopping Centre in Mountbatten Road are also undergoing their enbloc process which would likely be up in the enbloc market for tender soon.
The owners of Pearlbank Apartments have agreed to commerce a fourth collective sale attempt. With over 80 per cent of owners agreeing by both share value and strata area to commerce the sale process, the preparations for the tender exercise is currently in progress.
The building was Singapore’s tallest when it was completed in 1976. At 37-storey high, Pearlbank apartment houses 280 apartments and eight commercial units. With a reserve price of S$728 million, It would be a land cost of $1,505 after including the $195 million lease top charges.
The apartment owners are expected to receive $1.8 million to $4.9 million for unit sizes ranging from 1,323 square feet to 3,993 square feet. The redeveloped site is expected to house 730 residential units with an average size of 800 square feet.
Another immediate enbloc participant is How Sun Park, a freehold property in How Sun Road and located in close proximity to the Bidadari estate. With an asking price of $78 million, it promises good returns for its owners should the tender goes through.
The 660-unit Pine Grove near Ulu Pandan Road have commerced the gathering of the required 80% signatures for the enbloc approval. About half its owners have voted in favour of the collective sale agreement. An asking price of at least $1.63 billion would be the price tag for developers to bid.
Till year to date, there are a total of 17 successful enblocs in the market. While many condominiums and developments are preparing to join the crowd of enbloc, property analysts expects the process to continue into 2018 and early 2019. With the increasing bids made for the land parcels, the selling prices for these redeveloped properties are poised to increase. Home buyers who are sitting on the sidelines, should consider taking serious action to purchase the current unsold inventory in the market.
Many argue that the economy conditions are unfavourable and have been stagnant in 2017. It remains to be seen if there are strong demands for the enbloc units in 2018 when these redeveloped properties are launched.