More Attempts from Condominiums to En Bloc

9 May 2018 – The 419-unit Elias Green condo in Pasir Ris is expected to be launched for collective sale by marketing agent PropNex Realty at a reserve price of $780 million, with over 80 percent of the homeowners likely to give their consent, reported the Business Times.

In fact, 83 percent of the owners have already contributed to expenses necessary for the sale to proceed, such as the lawyer’s fee and property valuation, said its collective sale committee chairman Alan Loh, adding that they will start collecting signatures on Saturday (12 May).

If it secures a buyer at a reserve price of $780 million, each unit owner could pocket between $1.7 million and close to $2 million.

Built in 1994, the 99-year leasehold project measures 516,877 sq ft and has an allowable gross floor area (GFA) of 723,627 sq ft. It has a plot ratio of 1.4, which works out to $1,078 psf per plot ratio (psf ppr).

The buyer is unlikely to pay a development charge if it follows the existing plot ratio, but it will need to fork out a lease top up premium of about $60 million.

“The reserve price is set high taking into consideration that the developer will likely want to increase the plot ratio,” noted Loh. This is because nearby projects have plot ratios of 2.1 or more.

While Loh thinks Elias Green’s large area and proximity to amenities like Pasir Ris Park and Changi Airport will help attract a purchaser, some experts reckon the reserve price could dissuade potential buyers.

“The price seems high, given that it is right next to a very busy highway,” said International Property Advisor CEO Ku Swee Yong, adding that the winning developer may sell the units at a minimum price of $1,450 psf.

But ZACD Group executive director Nicholas Mak revealed that this is pricier than the average selling price of $1,094 psf at the nearby Coco Palms.

“There has been a lack of new supply in the vicinity since Coco Palms’ launch in 2014, but the asking price of Elias Green may turn off some potential developers,” he noted.

Meanwhile, the Straits Times reported that Ava Towers will be launched for collective sale via tender next Wednesday at a reserve price of $248 million.

Located at Ava Road in Balestier, the 124-unit freehold condominium has a land area of 64,471 sq ft and a gross plot ratio of 2.8, at which it could be redeveloped up to a GFA of 180,519 sq ft.

Marketing agent ERA Realty said the reserve price works out to a land rate of around $1,374 psf ppr, and there is no development charge payable for a gross plot ratio of up to 2.8. But if a 10 percent bonus GFA for balconies is included, the land rate will drop to $1,274 psf ppr, after taking into account a development charge of around $5.03 million.

ERA added that the Land Transport Authority will not require a pre-application feasibility study on traffic impact for the site.

The tender exercise for Ava Towers will close on 2 July.