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"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.

LAGUNA PARK

Laguna Park’s 2nd en bloc sale offer closes

The tender for the collective sale of Laguna Park has closed with no confirmation of a buyer.


Its marketing agent Knight Frank declined to elaborate if any bids were received in the tender, or if the bids matched its reserve price.

But Mr Nicholas Wong, executive director of Investment at Knight Frank said that it is, “in the process of negotiating with an interested party”.

The marketing agent has another 10 weeks to finalise a sale or negotiate a private treaty with interested parties, before the en bloc process collapses.

Experts speculate that Knight Frank’s reluctance to reveal more details could mean a lack of strong interest for the site.

“It doesn’t sound very good because from experience when the agents are very confident, they will say they have received six bids, and they may say things like the bids have mostly exceeded the reserve price,” added a property analyst who declined to be named.

“Off course, they have an agenda when they say something like that because if that gets published, the potential bargaining power of the developers is not so strong.

“But if the agent does not want to say anything, it may not be a good sign, it may mean that, for an example, all the bids are below the reserve price,” the analyst added.

This is the second time the 33-year-old condominium has been put up for sale.

The asking price this time is S$1.33 billion, about 11 per cent higher than the S$1.2 billion price tag in an earlier attempt in October 2009.

If the sale goes through this time, Laguna Park residents could pocket about S$2.2 million each from the successful sale of the property.

Observers said the timing of the tender closure could go against the sellers.

“The market sentiment has been quite weak lately. Right now, there’s a debt crisis in Greece and a possibility of a default. It would have been better if it closed a bit later,” said Mr Colin Tan, head of research and consultancy at Suntec Chesterton International.

“Some recent en bloc sales have also lowered their asking prices from previous attempts,” he added.

Based on the potential gross floor area of about 1.9 million square feet, the land price on a per square foot per plot ratio basis works out to be about S$975.

This suggests a breakeven price of S$1,400 to S$1,500 per square foot, which according to some experts is slightly too pricey, compared to similar projects in the area.

“The asking price is a bit too high, a more realistic figure is about 20 per cent lower,” said Mr Nicholas Mak, executive director of research and consultancy at SLP International.

“For such a massive land size, I don’t think there will be more than five bids. The bids may also come with conditions attached such as a clause to hedge the amount of development charge it is liable for,” he added.

Laguna Park is located along Marine Parade Road and has a land area of around 678,000 square feet.

It is zoned for residential use at a plot ratio of 2.8, potentially able to yield about 1,600 units at 1,200 square feet each.

Laguna Park currently comprises 516 residential apartments and 12 commercial units, ranging from 1,453 square feet to 3,390 square feet.

Knight Frank believes the site is attractive because it has unblocked sea views spanning 300 metres and a clear city skyline.
Source : Channel NewsAsia – 5 Jul 2011

4 comments:

  1. Anonymous06 July, 2011

    laguna piece of land is far better then tampines court yet no taker!

    ReplyDelete
  2. Anonymous07 July, 2011

    I disagree that Laguna Park is better..
    There is no MRT or shopping near by.
    Silver Sea currently in development is only taking up slowly.
    Whereas the mass market property in Tampines is still hot, just take a look at Central@8 - though it has negative report in terms of pricing, it was still over subscribed!
    TC has very thing people wants and within reach!

    ReplyDelete
  3. They are not apple to apple. The future Laguna will be a higher-end property, with a psf of $1600 - $2500. An unobstructed seaview is virtually unbeatable (nevermind the noisy ECP in between). Most of the excitement at the moment is in the lower end mass market properties and with the DBSS now out of the picture, they will become even more popular than before.

    In the paper yesterday, it warned that 10,000 new private homes were in the pipeline... but only 2,231 are in the suburbs which is not going to be enough.

    ReplyDelete
  4. Anonymous08 July, 2011

    Read this:
    http://imcmsimages.mediacorp.sg/CMSFileserver/documents/006/PDF/20110708/0807SUF002.pdf
    "What this unhappy episode and the
    success of other past DBSS projects have
    shown that no textbook can illustrate more
    clearly is that property is all about location,
    location, location — the first thing all
    real estate students learn.
    It appears that many applicants or
    buyers are prepared to pay or have paid
    significantly higher premiums for DBSS
    projects, many of which have been located
    in central locations or in mature estates."
    - TAMPINES COURT is one such great location.

    ReplyDelete