SINGAPORE – Thomson View Condominium is up for collective sale via public tender at a reserve price of $950 million after securing an 80 per cent mandate from its owners in just six months despite pandemic-related disruptions.
Potentially the largest residential collective sale effort by quantum so far this year, the asking price translates to a land rate of $1,293 per sq ft per plot ratio (psf ppr).
Last month, a joint venture between UOL Group and Singapore Land Group (SingLand) won the tender for Watten Estate Condominium in Bukit Timah with a $550.8 million bid.
The land rate for Thomson View Condominium factors in an additional 7 per cent of bonus gross floor area for private outdoor spaces, an estimated differential premium of $296 million for intensification, and an upgrading premium of about $324 million for a fresh 99-year lease.
The 34-year-old development, located near Upper Thomson MRT station, sits on a land area of about 50,197 square metres and comprises 200 apartments, 54 townhouses and a shop unit.
Owners of the apartments will stand to get between $2.6 million to $3.7 million, depending on their unit sizes, while owners of townhouses will receive $5.7 million, according to OrangeTee Advisory, Thomson View’s marketing agent.
Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned for residential development with a gross plot ratio of 2.1, giving it a gross floor area of about 105,413 sq m. This could potentially yield up to 1,240 new units, subject to approval from the authorities and the outcome of a pre-application feasibility study (PAFS).
The tender will close at 3 pm on Jan 13 next year.
Dr Henry Toi, chairman of the collective sale committee, said, “The collective sale team has worked amid the various circuit-breaker disruptions to engage all the owners, including those who could not return to Singapore due to lockdown in various countries. We are extremely pleased to have garnered the 80 per cent consensus in just under six months.
“Based on the better-than-expected tender results for the government land sale sites at Ang Mo Kio Avenue 1 and Lentor Central, we are optimistic of a good outcome,” he said.
Mr Tay Liam Hiap, director at OrangeTee Advisory, said: “There is a limited supply of upcoming residential projects in District 20, and we believe that the potential new development, with its excellent location, easy access to amenities and surrounding greenery, will appeal to many home-buyers.”
Nearby nature parks include the Windsor Nature Park, MacRitchie Reservoir Park, Lower Peirce Reservoir Park and Bishan-Ang Mo Kio Park.
In the third quarter this year, only the city fringe or rest of central region (RCR) saw an increase in prices for non-landed properties. Prices in that region climbed 2.6 per cent, up from the 0.1 per cent growth in the second quarter.
Mr Marcus Oh, managing director at OrangeTee Advisory, added: “The price increase in the third quarter was mainly driven by non-landed home sales in the RCR. We expect RCR sites that are within close proximity to transport nodes and amenities to continue to attract developers and home buyers.”