Pine Grove En Bloc 2023 Ulu Pandan Collective Sale

Pine Grove En Bloc 2023 Ulu Pandan Collective Sale Instagram

Pine Grove En Bloc 2023 – Ulu Pandan Collective Sale

Pine Grove, one of the largest residential sites in Singapore, has managed to launch a collective sale via public tender with a huge reserve price set at $1.95 billion.

It has attempted four collective sales since 2008, and this is the third one in which it has received 80% support for the sale.

Pine Grove was previously listed for $1.86 billion in 2019. The 99-year leasehold property consists of 660 units and has a remaining lease of 60 years.

In 1996, Pine Grove was among the first two HUDC estates to be privatized.

After Braddell View, Pine Grove was the second-largest of the 18 former HUDC estates constructed between 1974 and 1987, and then came the former Farrer Court.

According to their marketing agent, ERA Realty Network, upon successful sale, owners of 1,163 sq ft apartments in the development stand to get gross revenues of around $2.39 million, while those who own 1,934 sq ft properties might receive $3.2 million.

The land price of $1.95 billion, after accounting for an additional ten percent bonus gross floor area under different incentive programs, comes out to $1,434 per square foot per plot ratio.

ERA added that the land rate also includes an anticipated $1 billion in land betterment charge (LBC) for intensification and lease upgrades to new 99-year lease.

For the privilege of improving the usage of specific sites or constructing larger developments there, developers must pay an LBC.

Upon receiving planning clearance, the 893,218-square-ft property, which has a gross plot ratio of 2.1, might be transformed into a new luxury project with up to 2,050 additional units.

The tender for the Pine Grove site will close on November 29 at 3 p.m.

Latest Properties and Land For Sale

Owners Are Anticipating a More Favourable Outcome This Time

Pine Grove is the biggest residential property to be presented for collective sale this year in terms of both land area and price quantum, according to Mr. Tay Liam Hiap, managing director of investment sales at ERA.

“The collective sale site is launched now because we have a year to find a potential buyer for the site and apply to the Strata Titles Board for a sale order after achieving the 80% consensus.”

The owners are optimistic of a better outcome based on the better-than-expected tender result for a government land sale (GLS) property at Pine Grove (Parcel A), it said.

A joint venture between UOL Group and Singapore Land Group won the GLS plot in June 2022 with a price of $671.5 million, or $1,318 psf ppr, only $800 more than an offer from an Allgreen Properties unit.

In one of the most competitive bidding wars at the time, the plot received five offers.

However, despite the intense competition, the number of offers was still fewer than the average of seven received for tenders that concluded earlier in 2022.

Current Situation in the Collective Sale Market

Market watchers have pointed out that even though the supply of unsold new homes remains low, developers face increased development risks due to rising construction costs, growing macroeconomic uncertainty, and the dampening effects of the most recent rounds of cooling measures.

The en bloc market encounters competition from the Government Land Sales (GLS) scheme as well.

The government has increased the allocation of Government Land Sales (GLS) sites in order to mitigate rising costs, and there is a possibility of more increases in the future.

According to them, several developers exhibit a preference for obtaining GLS property due to its comparatively uncomplicated nature.

The persistent disparity between purchasers and sellers continues to exert downward pressure on the collective sales market as a whole.

According to market analysis, developers exhibit caution when making bids, but sellers maintain consistent expectations due to the hefty expenses associated with replacement.

Only 3 residential sites and 2 commercial sites were sold in the en bloc market this year, for a total of an estimated S$721 million.

Kew Lodge, is the most recent successful residential en bloc sale, it was acquired by Woh Hup subsidiary Aurum Land for $66.8 million

Recent En Bloc Properties Sold

  1. Delfi Orchard (Record Price)
  2. Noel Building
  3. Shenton House
  4. Kew Lodge 
  5. GSM Building 
  6. GS Building

Pine Grove En Bloc All Details

  • Status: For Sale

  • Tenure: 99-year leasehold

  • Land Size:  893,219 square feet

  • Total Units: 660

  • Plot Ratio: 2.1

  • Address: 1A – 1Q Pine Grove

  • District: 21

  • Marketing Agent: ERA Realty

  • Reserve Price: S$1.95 billion

  • Tender Close: November 29, 2023

2024-03-06T10:56:21+08:00September 15th, 2023|2023|
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