Ivory Heights HUDC Estate in the Jurong Lake District, is currently awaiting approval for en bloc sale. The estate is a former HUDC site, now privatised and the owners are hoping to net an estimated S$1.3 billion for the 654-unit site.
Initially, a collective sales committee was given the backing for a collective sale to be put on the table and the committee is now trying to get the required 80% backing from owners. Not all owners have currently agreed to the sale but there are hopes of securing the necessary backing for the sale to go ahead.
Those in the committee believe it’s very much possible to achieve somewhere in the region of $1.34 billion for Ivory Heights. If the final figure was that then it would bring in a decent return for the 654-unit owners.
In 2007, Farrer Court was sold at a similar price which managed to get for the 825,502 sq ft plot, $979 PSF PPR. If Ivory Heights received that price it would match the current record.
Marketing agent, SLP International said, ‘should an agreement be reached, each owner would most likely receive an estimated $2 million plus for the units.’ Within the past year, some units/flats have been sold for $1.248 million and $1.31 million respectively so it’s looking fairly positive for a potential collective sale.
However, the lucky developer may have to spend in excess of $160 million which would enable the 99 yr, now with 69 years remaining, to be topped up. The estate was first constructed in 1986.
The Vice Chairman of the Collective Sales Committee, Richard Hui, told the Straits Times, ‘it could be we see a reduction in the land value over the upcoming years. This will be due to the aging of the estate.’ He also added, ‘since the lease has 69 years remaining, it’s not too bad for potential developers.’
- Ivory Heights HUDC hold huge advantages over other en bloc sites
- Located in the HOT West Zone
- Many New Developments in Jurong Lake District
- Soon, the Jurong District is to become the second central business district (2nd CBD)within Singapore
- Properties prices in this area will only soar
- Shopping Paradise: Mega Mall can be found near Ivory Heights such as JCube, JEM, Big Box, Westgate and IMM.
- Jurong East MRT Station is close to Ivory Heights Condo
- Schools nearby: Yuhua Primary School, Fuhua Primary and Shuqun Secondary
- Ivory Heights HUDC is near to many attractions includes: Science Centre, Japanese Garden, Chinese Garden and much more
- There Will Be Big Demand for Properties Within the Jurong Lake District
Within the last year, there has been an influx of collective sales, especially of former HUDC sites. It all started back in early May of this year with Rio Casa and ever since, the floodgates have opened.
Already there have been five properties sold which includes Eunosville, Florence Regency and Serangoon Ville. In August, one such property (Tampines Court) managed to sell for $970 million and it was truly one of the biggest sales of the year.
However, while many HUDC (housing and urban development company) estates have been lucky in recent times, not all will be. Some HUDC sites are not on the market as yet and it’s thought they will not enter it for potentially another several months if not longer and that might not prove fruitful. It might prove difficult to sell quickly if that happens.
‘As properties come onto the market later, it’s likely the asking prices will also rise and most developers aren’t going to be too happy at these prices. It’s also unlikely they’ll pay those kinds of prices.’ Regional Director of Investments at JLL, Tan Hong Boon said. ‘That might prove to be a sticking point for later sellers.’ He added.
Should approval for a collective sale be granted, Ivory Heights is likely to receive a lot of interest. Whether the site is redeveloped or just updated, it will be interesting to see the future look of the Ivory Heights estate.