Jalan Daud Windy Heights Condo Relaunch En Bloc Sale

//Jalan Daud Windy Heights Condo Relaunch En Bloc Sale
Jalan Daud Windy Heights Condo Relaunch En Bloc Sale at $750 million

Jalan Daud Windy Heights Condo Relaunch En Bloc Sale at $750 million

After biting dust during its last attempt at en bloc sale in April, Windy Heights is making another attempt at collective sale and aims to lure buyers with a discounted reserve price.

The District 14 freehold site located in Kembangan Area’s Jalan Daud is attempting a collective sale at a time when the recently announced new property cooling measures have dented the mood in the market.

During its attempt at collective sales last time the owners had demanded S$806.2 million as reserve price.

Knight Frank Singapore which is the marketing agent for the collective sale informed that the sales committee had taken up a re-signing campaign in order to revise its reserve price.

The site is has been launched again for S$750 million which is 6.97% lower than the reserve price in April.

As per the revised price the land rate would work out to be S$1,089 psf ppr which includes 10% balcony bonus for the gross floor area subject to approval from the authorities.

This is significantly down from S$1,171 psf ppr based on April’s reserve price which was S$1,288 psf ppr if the balcony bonus wasn’t factored in. The site doesn’t invite any development charges.

The existing property houses 192 apartment units, 2 commercial units and 8 spacious penthouses. Together they sit on 250,702 sq ft (23,291 sq m) plot that has been zoned for residential use as per the 2014 Master Plan.

According to Knight Frank the site could yield 581 apartment units with an average size of 100 sq m upon redevelopment.

Executive Director and Head of Investment and Capital Markets at Knight Frank, Ian Loh said that Windy Heights presents a lucrative opportunity for the buyers due to limited supply for sites in Bedok and Kembangan Area.

He stressed on the fact that any new launch here is likely to attract buyers.

New Cooling Measures has Great Impact on Collective Sale

It is interesting to note that Windy Heights’ second attempt at collective sales comes at a time when developers’ appetite for new sites has taken a beating after the new cooling measures were announced.

Some of these such as 10% increase in remissible ABSD (Additional Buyer’s Stamp Duty) and 5% in non-remissible ABSD have led to a condition of market freeze.

Many sites including Horizon TowersDalvey CourtKatong PlazaLakeside Apartments, and Fortune Park have been forced to extend tender deadlines owing to lack of interest among buyers.

Whether this instance of price reduction will be a trend or an isolated case remains to be seen.

But according to Savills’ Senior Director for Research and Consultancy Alan Cheong more owners are likely to reduce their asking rate to ensure a successful sale.

This is way different from the trend during collective sale drought of 2014-15 where the owners were hesitant towards reducing the reserve price even though there were few takers in the market.

He added that given that most owners understand the immediate impact of the announced new cooling measures they would be flexible with the price.

As per his predictions in case of collective sales with reserve prices in the tune of S$350 million, the sellers may agree to 5% discounted prices to absorb non-remissible ABSD to attract developers.

In case of bigger sites, the sellers may have to take a massive cut between 10 and 15% to invite attention of the developers.

Windy Heights’ new tender shall close on 7th of September at 2:30 PM.

Windy Heights En Bloc Details

Marketing Agent: Knight Frank Singapore

Tenure: Freehold

Status: For Sale

Reserve Price: S$750 million

Tender Close:  Sept 7

Tender Extend  to Oct 10

Land Size Sq.Ft.: 250,702 

Total Units: 202

Plot Ratio: 2.1

Zone: District 14

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City Gate Singapore
2018-10-05T10:36:16+00:00August 3rd, 2018|2018|