In the past time, the collective sales in Singapore that involved residential developments were more than surprising. Not on rare occasions, they were sold for impressive sums, becoming a great deal for those that decided to opt for this solution. At the moment, Farrer Court holds the record in this sector, which was sold in 2007 for the stunning sum of $1.34 billion. A consortium led by CapitaLand represented the winning bidder, turning the development into what is known today as d’Leedon, a modern development with a total number of 1,715 units. But, if The Diary Farm gets all the approvals it needs for the owners, then its starting price has high chances of reaching $1.68 billion, which will definitely be a new record. In fact, all the owners of this freehold development are meeting at the end of the week, to discuss the terms concerning this collective sale.
At the moment, The Dairy Farm provides 477 units for residential use and 10 commercial units, which are currently occupied by various shops. The owners of all of these units will soon meet so that everybody agrees with the future procedures of the sale. As mentioned earlier, the prices they will ask for the property, which spans over a surface of 750,019 square feet, will be $1.68 billion, meaning that this will be the highest asking price for a collective sale so far, in the residential sector. Still, The Dairy Farm is not the only one set to win the first position when it comes to the most generous purchasing price. Other developments are looking to establish a new record of the kind, and Pine Grove is one of them. Located in the proximity of the Ulu Pandan Road, the owners of this development are asking a similar amount of money, which is a minimum of $1.65 billion. Currently, 73% of the owners provided their approval for the sale in the case of this property.
Getting back to The Dairy Farm, it is worth mentioning that there was a previous attempt at a collective sale, but with no results. This happened in 2007, but, as you can tell, the property that was then called Dairy Farm Estate, was not sold. This time, the collective sale committee in charge of the process hopes to get 80% of the required signatures from owners, which is the threshold for making the sale happen, in just 6 weeks. The committee hopes that the fact that the owners will get double the resale value of their units will convince them to go ahead and offer their approval. Also, the relatively aged units may require repairs and maintenance, which can turn out to be quite expensive, which is another factor that may influence owners to sell now.
According to consultants, the location of the development is more than attractive, although its size and price may make bidders want to form consortiums to have a higher winning change and to reduce risks. They also added that the developers who are looking to get the site should consider whether the property market in Singapore will be capable of assimilating the 1,500 units provided by this development, in the coming 2 years. But, having in mind that there are no too many collective sales in the area, there is barely any competition for this site. Also, whoever will acquire this freehold property should seriously consider developing units that address the needs of a family, due to the location of the property.