Huttons Asia (HA) applies the popular Law of Demand principle to fulfill the ambitions of the 160 residents of Park View Mansions.
Having orchestrated the collective sale of nearby Park West in January 2018, where “attractive price” played the definite role, HA was able to convince the owners to reduce the asking rate, in view of the prevailing market conditions, and thereby increase the demand.
Though their first attempt in April 2018 had interested many parties, their quotes did not match the, then asking price of S$320 million.
But by relaunching once again at S$250 million, with a significant 22% decrease in asking price, it expects to attract more buyers through competition.
Terence Lian, Head of Investment sales, HA finds the location quite strategic, being next to Jurong Lake Gardens.
It is believed to have all the positive points for a good residential redevelopment with a rare mix of natural ambience and urban development.
Started as the island’s first industrial town and considered as a remote boondock until the 2008 Master Plan, Jurong is now all set to become the next CBD (Central Business District) and an international gateway.
With the Tuas Mega Port and the High-Speed Rail (HSR) underway on the one hand, there are plans to introduce more greenery and water elements in addition to the existing parks and lakes.
The Park View Mansions sits on a 99-year leasehold (from 1971) with a land area of 191,974 square feet.
The DP (Differential Premium) charges for lifting title restriction and lease upgrading premium charges have been estimated to about S$140.8 million.
With the current asking price, the land rate translates to psf ppr of S$969.
At GPR 2.1, it could be redeveloped into 440 units having an average unit size of 915 sf.
HA’s Dy Head of Investment Sales, Angela Lim believes that sites like Park View Mansions are highly in demand since the Government plans to hold the release of GLS (Government Land Sales) for at least two to three years in Jurong area.
According to their estimate, the breakeven could be at S$1,450 psf.
For different reasons, following the July cooling measures, owners of residential properties have been projecting different pricings during their relaunch.
Some of them, who reduced the asking price are La Ville (from S$152 million to S$140.6 million), Windy Heights (from S$806.2 million to S$750 million) and Gilstead Mansion (S$68 Million to S$65 Million).
On a different note, Mandarin Gardens raised the asking price from S$ 2.48 Billion to S$ 2.79 Billion due to the discrepancy found in the earlier valuation of their property.
So, there has been just one collective sale, namely Phoenix Heights acquired by USB Holdings (OKP Holdings) in August at the price tag of S$33.1 million.
They were acquired by City View Holdings (S$ 276.2 Million) and Fragrance Group (S$ 131.1 Million) respectively.
The Park View Mansion Collective Sale is being meticulously organized by the CSC through their regular EOGMs with clear details and directions to the owner members through a dedicated website.
While they are aware of the advantages of their property site, they have been pushed to the collective sale to keep in line with the change of times and give way to the new.
All Investors and Developers, who believe and appreciate the nation’s vision for Jurong Lake District, are expected to dive unreservedly with foresight to acquire their lion’s share in the area.
The tender for Park View Mansions closes by 12 Noon of 18th Jan, 2019.