Roxy-Pacific has agreed to acquire the site at Spottiswoode Park, but at a price below the estate’s original reserved asking price of $120 million (1,020psf ppr). The developer has offered $100.8 million (860psf ppr).
To make the en bloc a success, the sales committee will have to get 80% signature consent from the owners again to reduce the reserve price to get a fresh sale order from the Strata Titles Board. This scenario is exactly the same for Laguna Park, which has rumored to have consider reducing its reserve price down from 1.2 billion to 950million or 1 billion.
Roxy-Pacific cites that it needs to replenish its land bank, and will look at Dragon Mansion as the third land site to acquire. It has done two sites this year, both in Joo Chiat area totalling 1,966sqm of land.
The first attempted enbloc is finally happening with the surge of market movement lately in property riding on the possible surge and better sentiments in the property market.
The 16 year old 72-unit freehold Dragon Mansion (District 2) on Spottiswoode Park Road has crossed the consent figure of 80% to proceed with the en bloc sale.
Dragon Mansion has a designated residential land area of 41,874 sqft with a plot ratio of 2.8 and can potentially yield a maximum gross floor area (GFA) of 111,700sqft. CKS Property is the marketing agent for the en bloc sale.
High Asking Price?
The asking price for the en bloc is at $1,020 per square foot per plot ratio (psf ppr) which totals the possible development charge to be around $400,000. The asking price set is based on ‘limited availability of such freehold residential land near the central business district’.
Will it go? It’s hard to tell since the price tagged is really steep at the moment as property watcher noted that UOL in the property peak times (2007) has paid for Oakwoods Height which was just nearby at 740 psf ppr.
Again, we should probably see new en bloc attempts coming up again if primary sales market continue to move as developers will be looking for new supply of their land bank.