Laguna Park at Marine Parade Road is up for collective sale with a reserve price of S$1.25 billion.
Together with Henry Park Apartments, which is also up for collective sale at between S$170 million and S$180 million, the total value of properties that have come up for sale in October has hit close to S$5 billion.
Developers are looking at collective sales with some caution now and added that any sale will depend on the attributes of the site and the developer’s risk appetite as well as market sentiment.
Government Land Sales Programme is offering developers many alternative sites.
The 677,493 sq ft Laguna Park site with proximity to the seafront would be a key selling point for any new development. Based on the reserve price, the land price comes to about S$954 per square foot per plot ratio.
Laguna Park was put up for sale earlier this year with a reserve price of S$1.33 billion. But the tender closed without a successful bid.
While the downward revision of the reserve price suggests that sellers might be more motivated to sell now, new requirements for en bloc sales allow a development to be put up for sale for one year only after receiving 80 per cent approval from homeowners. When this lapses, sellers have to seek a new mandate. Within this year, no collective sale has been transacted at over S$200 million yet. Generally, the key will be the land price and quantum.
The 99,000 sq ft Henry Park site, based on its asking price, the land price works out to be S$1,216-S$1,287 per square foot per plot ratio.
Still, analyst does not believe that the slew of collective sale sites will mean land prices will fall. Some sellers may have lowered their asking prices but their reserve price has stayed the same.
Barring the worsening in the global economic situation, the property market here should remain stable.
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