Pine Grove Condo another record breaking en bloc sale which spans a massive 893,000 sq ft. Currently, owners plan to put the large plot of land up for sale at an estimated S$1.65 billion dollars.
Situated in the prime location off Ulu Pandan Road, Pine Grove is sure to attract developers from around the globe.
The 660-unit estate is currently able to offer a 2.1 ratio plot and owners are hoping to receive a collective sum of over one billion which would ensure each unit be worth anything from $2.08 million and $2.64 million.
Units range significantly from 108 sq meters to 180 sq meters hence the difference in price. The estimated per square foot per plot ratio is $1,137 which is actually a great price simply because it’s lower than average SQF PPR.
Farrer Court, a similar site like Pine Grove, sold for a massive $1.34 billion dollars in 2007 and Pine Grove hopes to out-do the site with a whopping $1.65 billion-dollar reserve price. Farrer Court was in fact a HUDC estate and it attracted bidders and interested globally also.
- Dover MRT Within Walking Distance
- Plenty Of Transport Links Available (Buses)
- Close To Shopping Centers
- Development Potential
- Good Local Schools
- Prime Location
Pine Grove Condo is nicely situated and as such, the Dover MRT is only 1.04km away which is great. However, while MRT stations are important, there are also several bus services which run close to Pine Grove estate which is ideal. It’s another great transport link and one which could prove crucial for residents also.
Clementi Shopping Center and the Clementi Mall are near to Pine Grove. The Clementi Arcade with many playgrounds and a park within walking distance of the estate too.
These things make Pine Grove attractive to residents and there are a host of great schools within the local area. The Nexus International School and Emaar International School are both close by as well as the Nan Hua Secondary and Singapore Polytechnic too.
With restaurants a short driving distance, food centers and markets available, Pine Grove is situated nicely.
The Transview Golf & Country Club is close by and the Ayer Rajah Expressway can be used for residents who wish to reach Orchard Road and their shopping districts which are only fifteen minutes away.
Pine Grove offers great selling potential. The site may be large and so too the price but there is a real development potential and that is what interests the buyers.
Marketing agency, Huttons Asia, plans to create a collective sales agreement which will enable the privatized building to go up for sale en bloc.
However, in order to reach this agreement, there needs to be an 80% agreement from residents but it doesn’t seem to be in any doubt. Huttons Asia believes it’s possible to achieve the $1.65 billion and plans to keep the reverse there to ensure maximum returns for owners.
Pine Grove Condo does look to be a very interesting plot that will attract a host of bidders locally and internationally. If recent history is any indication, en bloc sales have become great development opportunities.
Similar buildings previously went up for sale priced well over the billion-dollar range and have seen success too. Marketing agents predict a consortium of developers may join together to make a collective bid on the site.
This would not only reduce their financial risk but potentially ensure profits are possible.
Pine Grove Condo is a vast site and overall costs for one development company would be in the region of $2 billion which is a sizeable amount. Most developers would not take such a risk, even if there is potential to sell high. That is why it’s more likely to attract a consortium than a sole developer.
On the 29th October, the committee will host a general meeting and residents will be able to attend and agree on the en bloc sale. 80% approval is needed but again it doesn’t look too troublesome to achieve even though there is only 66 years remaining on the lease. however, increasing the 99 year lease is possible but again, that will add to the overall costs.
Over the last few years alone, en bloc sales have changed the property market outlook and it can prove a success. However, Pine Grove has seen two previous en bloc sales fail in 2007 and 2011. There were no developers interested in the $1.7 billion price tag but times might have changed.
Just last year in 2017, collective sales have attracted buyers from around the world and it’s the sales figures reach over the $8.7 billion dollars mark with over 27 en bloc properties sold.
As for this year 2018, already 20 properties have been sold with sale over S$6.2 billion. It might reach $8 billion before Q3 of the year.
The Sign is good for Pine Grove and it is the best time to enter the Hot En Bloc Market. Owners must also realize it is the Perfect time to do so.
Tan Hong Boon, the JLL Direction said that there is a real potential to build 2,400 new units on the Pine Grove site. He also said it was more than likely a major development company or a consortium would be the ones to make bids for the sizeable property.
Kogi Murthi, who is the head of the collective sales committee at Pine Grove, said residents are looking forward to the sale and believe it’s a suitable time to go ahead with the plan.
He says, since the market is strong, and with the estate being in such a prime location in the Holland Road district, it’s a good option for residential developers.