Thomson View Condominium has recently launched a public tender for collective sale at a preset cost of $950 million. This decision was taken after the company secured an 80% mandate from owners within just six months, even after the ongoing Covid-19 related disruptions.
This is possibly the largest collective sale for residential apartments this year, where the asking price comes out to be the land rate per plot ratio of $1293/sq ft. Note that the land rate for the famous Thomson View Condominium includes an additional seven percent gross floor area specifically for private outdoor spaces. It leads to a differential premium of an estimated $296 million targeted for intensification with an upgrading premium of around $324 million that is available with a 99-year lease policy.
The tender for this collective sale will close on 13th Jan 2022, at 3 pm. It is important to mention that this is the fifth attempt for collective sale for this 255-unit condominium. The last effort for collective sale failed in the year 2018.
This residential property was developed almost 34 years ago, and it is located in close vicinity to Upper Thomson MRT station. The total land area is 50,197 sq. m, and it includes 200 apartments along with a shop unit and 54 townhouses. Owners of these apartments are expected to get an amount somewhere between $2.6 billion – $3.7 million; the amount varies with the size of the unit. On the other side, the owners of the townhouse will receive $5.7 million.
Collective sales in Singapore are currently the main point of attraction, and they are further fuelled by rising optimism among investors in the property market. The limited supply of land for new developments, brisk sales of newly designed homes, and low-interest rates are some of the main contributing factors to rising demands.
Most of the developers these days are replenishing land banks; therefore, unsold inventory is currently available at an all-time low price since 2017. During the second quarter of 2017, around 16,929 units remained unsold; however, during the third quarter, there were approximately 17,165 unsold privately-owned residential units. This is almost 12% from the previous quarter; however, it is 55% less than the first quarter of 2019 when there were 37,799 units.
As per the Master Plan of Urban Redevelopment Authority in the year 2019, the Thomson View site was recognized for residential development, and the gross plot ratio was decided to be 2.1, leading to the gross floor area of around 105,413 sq. m. This plan could provide 1240 new units, and the application was subjected to approval from respective authorities. The teams worked hard even after the serious lockdown measures due to the covid-19 pandemic, and they were able to receive 80% consensus just within six months.
Based on the tender results, the government land sales show optimistic outcomes. It is likely to attract more developers and buyers in the near future with loads of amenities and better transportation options.
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