Disclaimer






"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

DIAMOND TOWER

Diamond Tower in Balestier sold in collective sale

"EL Development has inked a deal to buy the freehold Diamond Tower at Jalan Rajah in the Balestier area for $49.6 million through a collective sale."

"The price works out to a unit land price of about $652 per square foot of potential gross floor area inclusive of an estimated $300,000 development charge payable to the state.
Diamond Tower has a land area of about 27,323 sq ft and is zoned for residential use with a 2.8 plot ratio (ratio of maximum potential gross floor area to land area).
‘We intend to build an 18-20 storey apartment block with about 100 units, mostly one and two bedroom units but we’ll also have some three bedders,’ EL Development managing director Lim Yew Soon said when contacted by BT.
The break-even cost for a new apartment development based on today’s construction costs works out to about $1,200 psf."

"Diamond Tower’s collective sale was marketed by Urban Front Real Estate. It was offered through a tender exercise which closed last month without a deal being sealed.
‘We submitted our offer after that and are buying under a private treaty deal,’ Mr Lim said.
The proposed collective sale of Diamond Tower will be subject to approval from Strata Titles Board as its owners have not unanimously consented to the sale."
Business Times-12 April 2010 

No unanimous consent. I can't confirm how many units there are and the article didn't say how much each unit got.
But the developer is going to make a killing on the new development with a plot ratio of 2.8.
DOUBLE the height
DOUBLE the salable area
QUADRUPLE the unit number.
DOUBLE the price.












8 comments:

  1. i wonder how much each owner could fetch if they sold their units separately themselves.

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  2. based on URA site, one transaction was done at 980K. Almost double the value. Not bad at all. If the break even is 1.2k psf, the selling price have to be around $1.4K to 1.5K to make a decent profit. Wow, can Balestier fetch this type of pricing? Apts there are currently going at 1K to 1.1K psf.

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  3. That transaction was in Sep 2009.
    You should not look at individual unit prices - enbloc is about selling land and you look to the residual land value.

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  4. land value? it is what does into the pocket of each owner that counts.

    "the developer is going to make a killing on the new development with a plot ratio of 2.8"

    Interesting assumption.
    How much do you think the developer will sell psf for a new development in current market?

    ReplyDelete
  5. Some of the views seen here, sort of shows 'concern' how much the developer would make. Why do you need to?
    They will make their profits no matter. They will hold the launch, raise the price or whatever. It is their concern, not yours.
    Sellers should be concern that when the $ finally comes to them, they have enough to buy a new home; b'cos it takes 1.5 to 2 years to close a large deal.
    You can't ask "how much the developer will sell psf per for a new development in current market?" - It has to be what's their projection to sell 3-4 years from en-bloc. They can't sell an en-bloc immediately! They need time to close the deal, and knock down, then build and then launch. That's the projection time line that they will see; not the 'now'. They like to tell you the 'now' so that you'll sell it to them low for their greater profit.

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  6. some people here think only of developers benefitting from enbloc deals... not really true.

    Owners do enjoy premium over how much they can get selling on their own.

    Selling Price is a balance of owners expectation vs what developers will pay.

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  7. I hold my judgment of Diamond Tower in reserve - as there isn't enough information to form a sound opinion. It might be a reasonable price after all.

    But without unanimous consent, people have had their homes taken away from them. I can never condone the bully-majoritism in en bloc.

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  8. no unanimous consent = bully-majoritism?

    ReplyDelete