Owners of the Ridgewood Condominium, which is elegantly perched on the grounds of Mount Sinai, have formed a collective sales committee (CSC) to spearhead the en bloc sale of the property.
The area on which the property sits is 672,148 square feet, and it is on a 999yr lease. This condominium, which is one of Singapore’s oldest, having been put up in 1981, has a plot ratio of 2.1 and currently holds 464 housing units.
According to International Property Advisor’s chief executive, Mr. Ku Swee Yong, some Ridgewood condominium owners whose units are mainly 4-bedroom could take away around $2m each.
The average of such units has 1,200 square feet of floor area, but others are as big as 1,500sq.ft. There are still other Ridgewood owners who own 2-storey townhouses that number 34, and these ones, according to Mr. Yong, could net between $3m and $4m each. Each town house has a floor area of between 1,800 and 2,000 square feet.
There have been attempts to organize a collective sale of Ridgewood before, first in 2007 and then in 2013, and both times the plan failed because there was no consensus among the owners.
The consenting owners did not hit the 80% minimum mark, the reason this property in the prime District 10 is still available for sale. Incidentally, Ridgewood is not the only big property in the region being offered for sale.
Owners of Pine Grove, an HUDC property that sits on an expanse of 893,000 square feet, have put up their property for sale at a reserve price of S$1.65b.
The en bloc sales wave is actually on the rise, with other property owners having begun discussions and sales processes already. Properties in the sales pipeline include Nim Gardens, Dover Parkview and Fortune Park.
That apparent flooding of properties for sale is what prompted Terence Lian, the head of investment sales at Hutton Asia, to caution that only those who get their asking price right will have a successful sale.
On the other hand, the chairman of Ridgewood’s management council, Mr. Vimal Harnal, is optimistic about the prospective sale of Ridgewood, saying the timing is right considering there have been successful en bloc sales in the recent past.
Some Ridgewood residents also think the collective sale is likely to succeed, by virtue of the fact that the owners have tested the market twice before. However, according to one of the residents who bought his flat in 1999, Mr. S. Radakrishnan, it is not easy to tell what the real mood is regarding the pending sale of the property, because while some residents are prepared to relocate right away, others might be too sentimental about their property and may not wish to leave.
Even experts differ in their view towards the pending sale of Ridgewood. For instance, Mr. Ku Swee Yong is of the opinion that the property is being offered for sale at a time when there is oversupply in the real estate market.
Mr. Ku also points out that there is already a discernible drop in rental income from estates under the Housing and Development Board (HDB) and also from condominiums. This sounds like another echo to the owners of Ridgewood not to set their asking price too high if they are serious about selling.