Why Former Park View Mansions Enbloc Will be Sought After by Buyers

When it comes to property, en-bloc deals are the sweet spot for developers. These properties are difficult to find, take a long time to complete and often cost a lot of money. If you’re interested in buying a unit in one of these properties, you need to know more about them.

en blocs are a windfall for developers

En blocs are a windfall for developers, as they can command prices of two to three times the purchase price. The en bloc process is difficult, however, and can be an arduous one. It is important to understand the risks associated with en blocs before buying a unit.

In 1999, a developer tried to sell off the entire development en bloc, but failed to do so due to a lack of consenting owners. Today, the price per unit en bloc is about $125 million to $128 million. Although this figure is 30 per cent lower than in 1999, the price still represents a substantial premium over selling the units individually.

As a result, a number of smaller developers have stepped in to buy these units. However, these smaller developers do not have the resources to bid for en-bloc sites, which can sell for several hundred million dollars. Sesdaq-listed Tee International is one such new entrant. The company has been in the electrical and mechanical engineering business for three decades, and it plans to turn the freehold units into luxury apartments.

They are difficult to find

The owners of the former Park View Mansions Enbloc are set to relaunch the collective sale tender on Wednesday. The owners of the enbloc have agreed to lower the reserve price by more than S$30 million due to weak market conditions. The new reserve price translates to S$969 per square foot per plot ratio, after an estimated differential premium and lease upgrading premium.

The property market is currently grappling with oversupply of private residential units. There are around 26,483 uncompleted residential units, and the government is actively addressing the problem by reducing the supply. Since mid-2019, the number of sites confirmed under the Government Land Sales (GLS) programme has dropped significantly. In the meantime, the number of enblocs is rising. However, developers are cautious.

They are expensive

The former Park View Mansions Enbloc in Singapore is a prime residential land parcel with an estimated gross plot ratio of 2.1. It could yield up to 440 units. The site is located near the Jurong Lake Gardens. The enbloc’s developer expects to make $320 million through the collective sale of the units. The developer plans to spend another $157 million for the intensification of the land.

With several MRT stations in the vicinity, residents will have easy access to the rest of the city. Furthermore, the area is only a few minutes’ drive from major expressways. Several educational institutions are also in the vicinity. The area has a land area of 17,834.8 square meters. Once the development is completed, buyers will be able to enjoy unobstructed views of the Jurong Lake.

They take time to complete

When a development enblocs its units, the developers and residents will usually work together to decide whether the development should sell off. A public tender exercise will be held to find a buyer for the development. Interested developers will bid for the site, while owners prepare to vacate their units and shop for a new property.

With oversupply of private units on the property market, the government is actively trying to curb the supply. It has reduced the number of confirmed sites under the GLS scheme and has begun a process to reduce the number of units in the pipeline. That said, en bloc sales had The Myst reached a fever pitch before cooling measures were introduced last year.

They are often sought after by buyers

Former Park View Mansions Enbloc is one of the most popular properties in Singapore and is sold at a higher price than the en bloc properties in other parts of the country. The site is situated in a prime district and is typically sought after by buyers. According to CB Richard Ellis, a global real estate firm, 31 sites with a combined value of over $4 billion have been sold by the end of June.

The owners of the mansions have launched a second en bloc sale this year, with more than 80% of the owners agreeing to lower the reserve price. The marketing firm ERA Realty estimates that the property is likely to fetch a price of S$1,023 psf ppr, which translates into S$140.8 million. However, the sale price is subject to planning permission from the Urban Redevelopment Authority and JTC.

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