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View Full Version : Normanton Park sold en bloc for S$830.1 million



Kelonguni
15-10-15, 16:00
Proof of concept for Leasehold 99 sales.

61 Years left, targeted selling price of $605 PSF PPR.



Normanton Park condo to go en bloc, largest local deal since 2007 if successful

Normanton Park condominium has been put up for collective sale, with a reserve price in the region of $840 million. ST PHOTO: CHEW SENG KIM


Published1 hour ago

Wong Siew Ying


SINGAPORE - Normanton Park condominium located near Kent Ridge Park will be put up for collective sale next Thursday (Oct 22) after more than 80 per cent of the owners agreed to the sale.

There are 488 units in the condominium project - made up of eight low-rise blocks and five 23-storey towers.

The Straits Times understands that the reserve price is in the region of S$840 million, making it one of the largest en bloc deals to be launched in Singapore in recent years.

Mount Everest Properties, which is marketing the collective sale said this translates to a land cost of about S$605 per sq ft per plot ratio.

Size of the units in the development range from 1,270 sq ft to 1,550 sq ft, and the marketing agent said each owner will stand to pocket S$1.6 million to S$1.7 million on average if the deal goes through.

Normanton Park, a 99-year leasehold project, has 61 years remaining on its tenure.

"We will be speaking to some developers with the objective of getting them to form a consortium to invest and to bid for this site together," said project consultant Dillon Loi of Mount Everest Properties.

Mr Loi said part of the strategy includes reaching out to foreign developers, including those in China.

Under the Urban Redevelopment Authority's Master Plan 2014, the over 660,000 sq ft site is zoned for residential use with a 2.1 plot ratio.

The plot could potentially yield 1,388 residential units based on an average size of 1,000 sq ft.

The trend of ageing population and rising demand for quality healthcare could provide a fillip to sales.

"We are actually very near to NUH and Alexandra Hospital as well, so a great angle is to brand the new development here as a wellness village with medical facilities," added Mr Loi.

To this end, the marketing agent intends to approach private medical groups in Singapore to team up with the property developer to drive the proposal.

The tender for the collective sale will close on Jan 19.

Kelonguni
15-10-15, 16:20
Luckily I did not buy this. Recent transactions hover around 900 PSF. With SSD included, it might be very hard to break even.

Kelonguni
15-10-15, 18:26
Luckily I did not buy this. Recent transactions hover around 900 PSF. With SSD included, it might be very hard to break even.

My bad. I think will still gain even with 16% SSD. Cos is based on new plot ratio.

pluto
15-10-15, 19:48
Is anyone here staying at Normanton park?

I would like to know if any owner is keen or not keen on en bloc and will you be looking at brand new or resale units in the same location etc.

bolster
15-10-15, 19:48
If there is a buyer for such a big development, it will sure make the surrounding property to appreciate and make people interested in nearby properties especially The Interlace. The government instead relax the cooling measure, they may introduce more measure to curb the property boom.

Kelonguni
15-10-15, 22:24
If there is a buyer for such a big development, it will sure make the surrounding property to appreciate and make people interested in nearby properties especially The Interlace. The government instead relax the cooling measure, they may introduce more measure to curb the property boom.

It is just district 4 or 5.

Right now we are at negative 8%. How can 1 development affect nationwide positive more than 8%?

fiat500
16-10-15, 21:31
This enbloc will not go through for sure...
No developers will dare to commit to such a big project!
Where to find so many buyers with all the absd n tdsr still in place?
It's unlikely gahmen will remove all these measures soon.

yowetan
16-10-15, 22:20
This enbloc will not go through for sure...
No developers will dare to commit to such a big project!
Where to find so many buyers with all the absd n tdsr still in place?
It's unlikely gahmen will remove all these measures soon.

Maybe hospital group will buy?

Kelonguni
16-10-15, 22:27
This enbloc will not go through for sure...
No developers will dare to commit to such a big project!
Where to find so many buyers with all the absd n tdsr still in place?
It's unlikely gahmen will remove all these measures soon.

If the concept is wellness retirement village, it will for sure go through.

605 PSF, no need top up. Add 400 PSF for construction. Earn 200 PSF sell you 1200 PSF for 55 to 60 year LH new property at Alexandra. Very suitable for Yowetan.

Sure sell out like Hillford.

bolster
17-10-15, 19:26
If the concept is wellness retirement village, it will for sure go through.

605 PSF, no need top up. Add 400 PSF for construction. Earn 200 PSF sell you 1200 PSF for 55 to 60 year LH new property at Alexandra. Very suitable for Yowetan.

Sure sell out like Hillford.

I think this is a fabulous idea.

Like hillford, just build smallest studio at 300sqft each for 60 years lease at that land, sure sell. Can even sell at $2000 psf or more. Ask NUH to extend their medical hub to that condo and circle line mrt extend their escalator till the entrance, sure sell out within a day.

Kelonguni
17-10-15, 20:08
I think this is a fabulous idea.

Like hillford, just build smallest studio at 300sqft each for 60 years lease at that land, sure sell. Can even sell at $2000 psf or more. Ask NUH to extend their medical hub to that condo and circle line mrt extend their escalator till the entrance, sure sell out within a day.

It's one way for the private property retirees to downgrade in a place they are comfortable with. They may not need large houses once their children get their places, and they may not be able to buy a HDB as well. At that stage, some might not even need longer leases.

We can bury our heads in the sand but the population will still continue to age. Plans must be made for every segment of Singapore.

Kelonguni
20-10-15, 22:04
I think this is a fabulous idea.

Like hillford, just build smallest studio at 300sqft each for 60 years lease at that land, sure sell. Can even sell at $2000 psf or more. Ask NUH to extend their medical hub to that condo and circle line mrt extend their escalator till the entrance, sure sell out within a day.

Developers can be greedy but not that greedy. Nearby developments with 99 years or FH status are not even at 2KPSF.

Average $200 PSF profit is enticing enough I feel.

$1,200 PSF is a decent amount and I am sure there will be subscribers for a new property at that location. In fact, if Normanton was not so old, I would have bought a unit there.

New units' quantum can range from say 500K (400 sqft) to 1.1 Mil (1000 sqft), factoring in differences between smaller and family-sized units. The target sales period is in 2021 (5 years later).

victorcpwong
21-10-15, 15:54
Selling price of $605 psf-ppr ??

People are mistaken. The selling price is $800 psf-ppr, when you figure in an additional S$300 million for differential premium (for maximising gross floor area and a lease top-up to 9 years.

See Business Times report:

Normanton Park up for collective sale

But consultants note that investment quantum, size of site are too large for developers' current appetite


By

Lynette [email protected]@LynetteKhooBT

Oct 16, 20155:50 AM

Singapore

NORMANTON Park condominium, located near Kent Ridge Park, will be put up for collective sale next Thursday after the requisite 80 per cent majority consent was secured from the owners.

But consultants were quick to rain on the parade, saying that the site may be too big for the current appetite of developers, whose risk of holding large sites is exacerbated by the additional buyers' stamp duty that applies to unsold units five years after the land purchase date.

The hefty reserve price of S$840 million may make it a tough sell, said SLP International executive director Nicholas Mak, who estimates that the differential premium for maximising gross floor area and a lease top-up to 99 years amount to an additional S$300 million.

According to marketing agent for the collective sale Mount Everest Properties, the reserve price translates to around S$800 per square foot per plot ratio (psf ppr), inclusive of the differential premium and the lease top-up. If an adjoining state land is included, the figure will drop to below S$800 psf ppr

Kelonguni
21-10-15, 16:19
Agree with your calculations regarding top up.

But the proposal wrapped around wellness village and healthcare with AH and NUH seems to be plausible as well.

In essence, developers will only come in if Govt allows no top up of lease to 99 years. To market as a retirement condo like Hillford. This appears the only way at the moment to resolve the deadlock between buyers and sellers.

But I agree that the enbloc may not go through. We will have to be patient on that.



Selling price of $605 psf-ppr ??

People are mistaken. The selling price is $800 psf-ppr, when you figure in an additional S$300 million for differential premium (for maximising gross floor area and a lease top-up to 9 years.

See Business Times report:

Normanton Park up for collective sale

But consultants note that investment quantum, size of site are too large for developers' current appetite


By

Lynette [email protected]@LynetteKhooBT

Oct 16, 20155:50 AM

Singapore

NORMANTON Park condominium, located near Kent Ridge Park, will be put up for collective sale next Thursday after the requisite 80 per cent majority consent was secured from the owners.

But consultants were quick to rain on the parade, saying that the site may be too big for the current appetite of developers, whose risk of holding large sites is exacerbated by the additional buyers' stamp duty that applies to unsold units five years after the land purchase date.

The hefty reserve price of S$840 million may make it a tough sell, said SLP International executive director Nicholas Mak, who estimates that the differential premium for maximising gross floor area and a lease top-up to 99 years amount to an additional S$300 million.

According to marketing agent for the collective sale Mount Everest Properties, the reserve price translates to around S$800 per square foot per plot ratio (psf ppr), inclusive of the differential premium and the lease top-up. If an adjoining state land is included, the figure will drop to below S$800 psf ppr

reporter2
23-10-15, 18:30
http://www.straitstimes.com/business/property/normanton-park-condo-up-for-collective-sale

Normanton Park condo up for collective sale

Oct 16, 2015

Wong Siew Ying


The lacklustre property market enjoyed a shot of adrenaline yesterday with news that the sprawling Normanton Park condominium is up for a collective sale with an asking price of around $840 million.

The ambitious move by the owners of the 38-year-old estate near Kent Ridge Park seems to fly in the face of prevailing market trends, which all point to slowing sales.

Only 341 new private homes were sold last month, a striking fall of 33.5 per cent from the 513 units moved in August, according to the Urban Redevelopment Authority yesterday.

The 488-unit Normanton Park would be the biggest collective sale in eight years if it goes through, but experts are sceptical.

SLP International Property Consultants research head Nicholas Mak said it will be "a tough sell". "The large size and investment quantum are deemed to be riskier by developers," he said.

The 99-year leasehold estate is on a sprawling 660,000 sq ft site with a reserve price said to be in the region of $840 million. A sale at that level would make it the largest collective deal since Farrer Court was sold at $1.3 billion and Leedon Heights at $835 million in 2007.

Marketing agent Mount Everest Properties said a developer would have to stump up an additional $300 million or so to top up the lease, which has 61 years to run, and account for the development charge. Factoring in these costs, the overall price would work out to about $820 per square foot per plot ratio, as the site has a plot ratio of 2.1. Each owner could stand to pocket $1.6 million to $1.7 million on average.

Businessman Anthony Chai, 58, who owns a second-floor unit, had hoped his home would fetch more money, but went along with the sale decision as the estate is ageing."If the guy upstairs turns on his shower, there is a leak in my roof because the sealants have already gone bad after so many years."

There has been only one large collective sale this year, when SIN Capital Group bought Thong Sia Building, along Bideford Road, for $380 million in July.

Amber Park, Spring Grove and Riviera Point are among the many that tried their luck in recent years but failed to find a buyer.

"We will be speaking to some developers with the objective of getting them to form a consortium to invest and to bid for this site," said project consultant Dillon Loi of Mount Everest Properties. Part of the strategy involves reaching out to foreign developers, including those in China, he added.

The tender for the Normanton Park sale closes on Jan 19.

reporter2
23-10-15, 18:46
http://www.businesstimes.com.sg/real-estate/normanton-park-up-for-collective-sale

Normanton Park up for collective sale

But consultants note that investment quantum, size of site are too large for developers' current appetite

By Lynette Khoo

[email protected]

@LynetteKhooBT

Oct 16, 2015


NORMANTON Park condominium, located near Kent Ridge Park, will be put up for collective sale next Thursday after the requisite 80 per cent majority consent was secured from the owners.

But consultants were quick to rain on the parade, saying that the site may be too big for the current appetite of developers, whose risk of holding large sites is exacerbated by the additional buyers' stamp duty that applies to unsold units five years after the land purchase date.

The hefty reserve price of S$840 million may make it a tough sell, said SLP International executive director Nicholas Mak, who estimates that the differential premium for maximising gross floor area and a lease top-up to 99 years amount to an additional S$300 million.

According to marketing agent for the collective sale Mount Everest Properties, the reserve price translates to around S$800 per square foot per plot ratio (psf ppr), inclusive of the differential premium and the lease top-up. If an adjoining state land is included, the figure will drop to below S$800 psf ppr.

Normanton Park is a housing estate reserved for military personnel and their families built in 1977, which has been "demilitarised" and gained condominium status only in 2012. The estate is on a large site of about 661,000 sq ft with a balance lease term of about 61 years. It comprises 448 units (1,668-1,776 sq ft) in eight low-rise blocks and five 23-storey towers. Owners controlling at least 80 per cent of the development's share value and strata area have agreed to the en bloc sale.

The future development on the site can rise up to 24 storeys. Under the URA's Master Plan 2014, the site is zoned for residential use with a 2.1 plot ratio. This translates into a potential project of 1,388 units based on an average unit size of 1,000 sq ft.

"The current property measures has curbed housing demand and developers' appetite for large sites," Mr Mak said. He noted that the large size and investment quantum of the site means relatively higher risk for developers, who "may end up putting many eggs in one basket" when it's taking a long time now to sell all units in a mega project.

Elsewhere, Shunfu Ville, a 358-unit residential project in Upper Thomson, is also up for collective sale with a minimum price of S$688 million. The estate was built in the late 1980s by the former Housing & Urban Development Company (HUDC) and privatised in 2013.

Past mega projects built on en bloc sites include the 1,715-unit D'Leedon, which sits on the former Farrer Court estate which was acquired for a record S$1.3 billion in June 2007, and the 1,040-unit The Interlace, which sits on the former Gillman Heights that was bought for S$548 million in May 2009. Developer CapitaLand was seen cutting prices for some unsold stock in D'Leedon and The Interlace after the projects obtained their temporary occupation permits.

Chesterton Singapore managing director Donald Han noted that pure residential collective sale activity has been quiet in the last three years. "Big ticket ones in excess of S$300 million will have to compete with government sales of sites which offer fresh 99-year leases and is a more straightforward process," he said.

In June, a 99-year leasehold site at Dundee Road was sold to HY Realty in a government land sale for S$871 psf ppr, while a government site at Lorong 6/Lorong 4 Toa Payoh fetched S$755.30 psf ppr from a consortium led by Evia Real Estate.

Based on Normanton Park's estimated reserve price, the owners stand to receive over 50 per cent more of what they would have obtained from selling their units individually. The tender exercise for Normanton Park closes on Jan 19.

reporter2
08-07-17, 23:23
Normanton Park trying for another go at selling en bloc

JUL 1, 2017

Grace Leong


The owners of Normanton Park condominium are trying again to launch a collective sale.A meeting scheduled for next Saturday will aim to form a sales committee for the 488-unit project near Kent Ridge Park, which failed at a collective sale attempt in 2015.

But at least 30 per cent of the owners must be present or send a proxy for the meeting to be valid. "The sales committee will have to shortlist some lawyers, marketing agents and property consultants, and seek their proposals, said Mr S.S. Chopra, a retired navy colonel and chairman of the Normanton Park MCST.

"The reserve price and method of apportionment has to be decided during another EOGM (extraordinary general meeting), which we plan to hold on July 29."

Once these are approved, the next step will be to finalise a collective sales agreement and get 80 per cent of owners to sign up so the tender process can start.

Normanton Park, a 99-year leasehold project, has 59 years left on its tenure. Under the Urban Redevelopment Authority's Master Plan 2014, the more than 632,000 sq ft site is zoned for residential use with a 2.1 plot ratio.

Mr Chopra told The Straits Times yesterday the estate is having a second go at a collective sale because "we received advice that the time is now right".

There have been four collective sales reaping slightly over $1.5 billion so far this year, compared with three for the whole of last year totalling about $1 billion.

Normanton Park was first put up for collective sale in October 2015. The Straits Times had reported that the reserve price was around $840 million but there were no bids.

"The feedback we got was that the sentiment was not right for a (sale) en bloc of such a large estate then. But the property remains a good buy," Mr Chopra said.

reporter2
17-08-17, 22:37
Normanton Park to be put up for en bloc sale at a minimum S$800m

Florence Regency and Amber Park condo also cross 80% approval for collective sale

August 10, 2017

Lynette Khoo


NORMANTON Park condominium is slated to be launched for collective sale on Aug 22 at a minimum price of S$800 million after more than 80 per cent of owners by share value and strata area approved the collective sales agreement (CSA) by Wednesday.

It is probably a record for a project of this scale with 488 units to garner sufficient signatures from owners within 11 days, said Ian Loh, head of investment and capital market at Knight Frank, which is marketing the project.

The estimated differential premium for intensification of the site is S$225.3 million, while the lease top-up is estimated to cost another S$220.64 million. This will translate to a land rate of S$898 per square foot per plot ratio (psf ppr), said Mr Loh.

Owners are expected to pocket gross profit of between S$1.62 million and S$1.8 million.

Elsewhere, privatised HUDC estate Florence Regency in Hougang and freehold Amber Park condominium have also crossed the 80 per cent consensus for their collective sales agreements, BT understands.

Both projects are marketed by JLL, which declined to comment on their reserve prices. But minutes of a collective sales committee meeting for the 336-unit Florence Regency this month released on a blog shows the reserve price being raised to S$600 million.

For Normanton Park, obtaining the requisite approval for the CSA in 11 days is considered a major feat. "This shows that a majority of the owners are in complete agreement with the terms in the CSA and are further keen to see the en bloc successfully done as soon as possible," said SS Chopra, who chairs the collective sales committee.

In fact, some 30 per cent was obtained on July 29, the same day the CSA was approved by the general body unanimously at an extraordinary general meeting, added Mr Chopra, a retired navy colonel.

This is the second attempt at an enbloc sale by owners of Normanton Park, after their first attempt in October 2015 with the same reserve price.

The 99-year leasehold project has 59 years left on its tenure. Under the Urban Redevelopment Authority's Master Plan 2014, the 660,999 square foot site is zoned for residential use with a 2.1 plot ratio.

Normanton Park is near Kent Ridge Park, the National University of Singapore, National University Hospital and businesses in the one-north development. Future owners or occupiers of the new project on the site would likely be professionals working in the vicinity as well as families whose children are studying in the education institutions nearby, along with those who would love to frequent a park, Mr Chopra said.

Mr Loh also pointed out that there is no comparable site like Normanton Park for high-rise residential development available for sale now, so there is no competing supply in the near term.

So far this year, there have already been seven successful collective sales worth S$2.5 billion; for the whole of last year, only three deals worth S$1 billion were closed.

Market watchers expect another few billion dollars worth of deals to close this year as the collective sales market roars back to life, fuelled by transactions-led property recovery and limited land up for grab in state tenders.

The en bloc fever has prompted more projects to kick-start the collective sales process.

The latest to hop onto the bandwagon are Sutton Place, a 44-unit condominium off Farrer Road, and Faber Garden, a 233-unit freehold condominium near Upper Thomson Road. Both are in the midst of appointing their marketing agents.

Hawaii Towers, a 135-unit freehold development at Meyer Road, is said to be trying its luck again at a collective sale.

Those already put up for en bloc tender include the 12-unit freehold Villa D'Este condominium in prime District 10 where owners are asking for S$96 million, as well as the 12-unit freehold Dunearn Court in the prime District 11 where owners are asking for S$38.8 million.

At 560-unit Tampines Court, owners of the privatised HUDC property are asking for S$960 million, which could be the largest since Farrer Court fetched the highest price of S$1.34 billion in 2007.

Laguna
18-08-17, 08:38
This is super fast. The SPs know if they cannot have it done this round, chances will be almost impossible already.
Time is essence.

All developers are spoilt with choices now

patches
18-08-17, 09:59
This is super fast. The SPs know if they cannot have it done this round, chances will be almost impossible already.
Time is essence.

All developers are spoilt with choices now

It's a record. The owners know that they wont be able to get this price if they sell on their own. If I sit in the SC, I would have lowered the RP by 15-25%. Given the large quantum, inaccessibility for non-drivers and not many good primary schools nearby, I find it hard for any developer to digest the fact that they have to sell thousands of units there. As such, with no offense to any owners there, I think given the choices that developer has to fill their landbank, there are plenty of better quality plots that they can pick from.

Laguna
18-08-17, 11:12
IMO, now, for all the HUDC SP going for enbloc, they are expecting at least $1.7m an unit or 50% premium.
EunosVille was a record, at $2.3m which is more than Farrer Court.

Let's see Laguna Park, perhaps they will be asking for $2.3m in view of their seaview and upcoming MRT, but they will also rule out all bidders at this asking price.

patches
18-08-17, 12:26
IMO, now, for all the HUDC SP going for enbloc, they are expecting at least $1.7m an unit or 50% premium.
EunosVille was a record, at $2.3m which is more than Farrer Court.

Let's see Laguna Park, perhaps they will be asking for $2.3m in view of their seaview and upcoming MRT, but they will also rule out all bidders at this asking price.

EuonsVille's proximity to the mrt is probably the reason why they got that price. In comparison to Farrer Court, that en bloc deal was almost a decade ago, so in terms of price, I think EunosVille SP managed to carve out a fair deal.

I am not entirely sure about Laguna Park will get it in current market conditions because of the sheer size of the quantum that includes the RP, number of units and timeframe involved. I can also see why there is probably much higher expectations from SP on the RP given the location and its status. Further, my view also stems from the fact that it feels to me that people living in that vicinity tends to be rather sticky (or in simple terms, "emotionally attached"). I know of a friend personally who refuse to agree to the en bloc sale even though they bought it for more than 30 years ago. Again, no offense, but if they do succeed, it will be a major feat accomplished.

My 2 cents, of all the remaining HUDC remaining, Chancery Court probably stands the best chance for a great en bloc price. Lower quantum, CCR status, and very good primary schools vicinity. Of course, no sea view :(

bargain hunter
18-08-17, 13:29
if a developer bids 900psf+ and reverses the unit sizes and psf at the interlace (e.g. interlace 1400 sq ft sell at 1100psf change to new normanton 1000 sq ft at 1500psf lol), i think it may still attract bidders.

patches
18-08-17, 13:49
if a developer bids 900psf+ and reverses the unit sizes and psf at the interlace (e.g. interlace 1400 sq ft sell at 1100psf change to new normanton 1000 sq ft at 1500psf lol), i think it may still attract bidders.

Indeed, their marketing agent already showcasing the "potential windfall" that is 1,380 units of 1,000 sq ft each. However, selling at $1,500 psf is going to be a stretched because condos nearby Normanton Park are all trading between $800 to $1000 psf, and most of them are in better locations (i.e. near Pasir Panjang port where they clean up, nearer to MRT).

FYI - the nearby condos are Vista Park, Buona Vista Gardens, Bayville and Buona Lodge, and the Peak.

It does not mean that a condo is old, they will en bloc. One of the major factors in the price difference between new launch vs resale. It is always going to be challenging when you want to sell thousands of units in a relatively less mature estate. If I am only given Normanton and TC to buy as a developer, I will go for TC because new launch is trading higher and secondly, its in a mature estate (more demand). Of course, if I am given more choices other than those two, I will choose others i.e. Euonsville :P

Tulip09
18-08-17, 15:31
Developers have some idea now of what's going to be available going fwd. It would be interesting to see how it goes for Normanton Pk. Like TC, they are a big site and have failed in the past. I feel they have a more " atas" location although I agree there are accessibility problems. So far TC, is the first big site in this round. In the pipeline we have others coming like Laguna Pk, Lagoon View and Ivory Heights. They are all getting started in the process so Developers can pick and may be more selective.Since TC ended up being a " one horse race" this may set the pattern for mega sites. I agree Chancery has the best potential for location and size. Florence Regency which should be launching soon too , is also likely to be more palatable.
So while en bloc fever may be back, not all sites may be looked upon favourably.

patches
18-08-17, 16:07
Developers have some idea now of what's going to be available going fwd. It would be interesting to see how it goes for Normanton Pk. Like TC, they are a big site and have failed in the past. I feel they have a more " atas" location although I agree there are accessibility problems. So far TC, is the first big site in this round. In the pipeline we have others coming like Laguna Pk, Lagoon View and Ivory Heights. They are all getting started in the process so Developers can pick and may be more selective.Since TC ended up being a " one horse race" this may set the pattern for mega sites. I agree Chancery has the best potential for location and size. Florence Regency which should be launching soon too , is also likely to be more palatable.
So while en bloc fever may be back, not all sites may be looked upon favourably.

I cant disagree with you that Normanton area has a more "atas" feel. Is that enough of a "pull" factor for new buyers in that area? I am not sure. There are plenty of "atas" locations that may be trading 1200-1500 psf in resale market. While you have mentioned above are all HUDC that are leashold, there are plenty of private freehole sites that are coming to the en bloc market. Those old private estates that are 20-30 years old, quantum of 500 mil or less, near MRT and near good primary schools will probably stand a better chance.

The fact that there was only one developer bidding for TC with no land-hungry/diversification foreign developer bidding, is a signal to the market that TC isn't as attractive as a site; and in a more philosophical way of concluding the TC tender: every piece of land has an intrinsic value. So for those trying to buy old HUDC think twice!

Tulip09
18-08-17, 16:56
I cant disagree with you that Normanton area has a more "atas" feel. Is that enough of a "pull" factor for new buyers in that area? I am not sure. There are plenty of "atas" locations that may be trading 1200-1500 psf in resale market. While you have mentioned above are all HUDC that are leashold, there are plenty of private freehole sites that are coming to the en bloc market. Those old private estates that are 20-30 years old, quantum of 500 mil or less, near MRT and near good primary schools will probably stand a better chance.

The fact that there was only one developer bidding for TC with no land-hungry/diversification foreign developer bidding, is a signal to the market that TC isn't as attractive as a site; and in a more philosophical way of concluding the TC tender: every piece of land has an intrinsic value. So for those trying to buy old HUDC think twice!

You are right I was only talking about HUDC to compare " apples" with " apples". No doubt FH sites that are getting rarer these days , will be more attractive. However I think they will also be pricing it accordingly. I mean the owners who put it up for sale. But the developer doesn't have to TOP up lease so that will be factored in too. In the years ahead as leases run down we will get to see the LH effect of those that don't go en bloc. So far , it hasn't been much of a concern as the LH properties have still a long way to go.

HP65
18-08-17, 19:50
Indeed, their marketing agent already showcasing the "potential windfall" that is 1,380 units of 1,000 sq ft each. However, selling at $1,500 psf is going to be a stretched because condos nearby Normanton Park are all trading between $800 to $1000 psf, and most of them are in better locations (i.e. near Pasir Panjang port where they clean up, nearer to MRT).

FYI - the nearby condos are Vista Park, Buona Vista Gardens, Bayville and Buona Lodge, and the Peak.

It does not mean that a condo is old, they will en bloc. One of the major factors in the price difference between new launch vs resale. It is always going to be challenging when you want to sell thousands of units in a relatively less mature estate. If I am only given Normanton and TC to buy as a developer, I will go for TC because new launch is trading higher and secondly, its in a mature estate (more demand). Of course, if I am given more choices other than those two, I will choose others i.e. Euonsville :P


Show me which new condo of size 1,000 sqf (even if LH) near to Normanton goes for $800-1000 psf? i agree it is conceivable to sell 1000 sqf at $1500 psf for this location given the proximity to Science Park, xxx-polis and 1-North. I'm vested in this area (not normanton) so I'm bias but i think there is potential for this site. A short scoot or bus ride (internal or SBS) and you are at circle line Kent Ridge MRT. If it's $1500 psf here, I'll grab!

bargain hunter
18-08-17, 20:29
Indeed, their marketing agent already showcasing the "potential windfall" that is 1,380 units of 1,000 sq ft each. However, selling at $1,500 psf is going to be a stretched because condos nearby Normanton Park are all trading between $800 to $1000 psf, and most of them are in better locations (i.e. near Pasir Panjang port where they clean up, nearer to MRT).

FYI - the nearby condos are Vista Park, Buona Vista Gardens, Bayville and Buona Lodge, and the Peak.

It does not mean that a condo is old, they will en bloc. One of the major factors in the price difference between new launch vs resale. It is always going to be challenging when you want to sell thousands of units in a relatively less mature estate. If I am only given Normanton and TC to buy as a developer, I will go for TC because new launch is trading higher and secondly, its in a mature estate (more demand). Of course, if I am given more choices other than those two, I will choose others i.e. Euonsville :P

in case you haven't noticed, there are very few sites which are sold cheaply these days. psf for brand new 99 year leaseholds are also are also easily exceeding the old freeholds nearby simply because the units have been shrunk and people have been snapping these up because of a variety of reasons previously discussed in other threads for e.g. low quantum, time lag till completion to raise cash etc etc.

for the land sales e.g, recent sites would be 2 woodleigh sites at 1100psf (expect 1600 to 1900psf selling price). serangoon garden site at 965psf (expect >1600psf selling price). even the serangoon ville site nearby was sold for about 835psf (minimum selling price 1400psf). queenstown 1038psf (expect >1700psf), eunosville 908psf (good price as prices moved up after this), also minimum 1500psf. i had mentioned previously that u can see from the sales data monthly, 10xxpsf and 11xxpsf mass market new launches are being snapped up rapidly. le quest recently was able to sell at 1280psf easily. given the lack of mass market sites sold recently and at low prices, it looks like TC will be sold at 12xxpsf.

i would think NP is definitely more than a mass market land site and 900psf is not a ridiculous price. at present, capitaland has no landbank and the ceo mentioned: CapitaLand to be 'a bit more aggressive' in land bidding

CapitaLand president and chief executive Lim Ming Yan said that the property firm wants to be "a bit more aggressive in its approach" to the residential market in its home base.

"We are prepared to be more aggressive, but we remain disciplined," he said.

"If you are hoping for a bargain purchase in the Singaporean residential market, then you will never get anything. You have to put in your best attempt given your view of the outlook of the market, and not take the view that you can keep a lot of reserves, put in a price and hopefully you will get it at bargain price. It will never happen."

http://www.straitstimes.com/business/property/capitaland-will-be-a-bit-more-aggressive-in-land-bidding-says-ceo

given their experience with interlace nearby, i think they know how to position their units uniquely. with the previous ceo gone, building small units is now possible for them. otherwise, it would be impossible for them to compete if they still want to build big units as the psfs are not favourable.

patches
18-08-17, 22:15
Show me which new condo of size 1,000 sqf (even if LH) near to Normanton goes for $800-1000 psf? i agree it is conceivable to sell 1000 sqf at $1500 psf for this location given the proximity to Science Park, xxx-polis and 1-North. I'm vested in this area (not normanton) so I'm bias but i think there is potential for this site. A short scoot or bus ride (internal or SBS) and you are at circle line Kent Ridge MRT. If it's $1500 psf here, I'll grab!

Fyi, I am not bias against this location, frankly speaking, I am a 10-minutes car ride away from Normanton Park condo.

Also, to add clarity in my argument, I should be clearer; secondary resale market. If its $1500 psf, I will bid for some of the older condos in River Valley such as Valley Park that even traded $1200-$1300 for 1000 sqf and below. This is simply just one of the many CCR older condos that are trading in that sort range.

For the $800-1000 psf, you can refer to the link below. While I stay quite near to Normanton, I am no expert in this area, in fact, I would put higher value to the region nearer to Pasir Panjang for the Southern Front development.

http://www.stproperty.sg/condominium-directory/normanton-park-condo/view-price-trend-analysis/nearby/site-search/10745

bargain hunter
18-08-17, 22:37
Fyi, I am not bias against this location, frankly speaking, I am a 10-minutes car ride away from Normanton Park condo.

Also, to add clarity in my argument, I should be clearer; secondary resale market. If its $1500 psf, I will bid for some of the older condos in River Valley such as Valley Park that even traded $1200-$1300 for 1000 sqf and below. This is simply just one of the many CCR older condos that are trading in that sort range.

For the $800-1000 psf, you can refer to the link below. While I stay quite near to Normanton, I am no expert in this area, in fact, I would put higher value to the region nearer to Pasir Panjang for the Southern Front development.

http://www.stproperty.sg/condominium-directory/normanton-park-condo/view-price-trend-analysis/nearby/site-search/10745

totally agree with u, i would do the same but there are many many new buyers who would not. a valley park unit that is < 1000 sq ft is a 1 bedder. these days, that is the size of a mass market 3 bedder which better meets the buyers' needs so i wouldn't compare them. the buyers simply do not look at it from an investment point of view like we do. they have a whole lot of other practical considerations to consider when they are purchasing for their own use.

patches
18-08-17, 22:49
in case you haven't noticed, there are very few sites which are sold cheaply these days. psf for brand new 99 year leaseholds are also are also easily exceeding the old freeholds nearby simply because the units have been shrunk and people have been snapping these up because of a variety of reasons previously discussed in other threads for e.g. low quantum, time lag till completion to raise cash etc etc.

for the land sales e.g, recent sites would be 2 woodleigh sites at 1100psf (expect 1600 to 1900psf selling price). serangoon garden site at 965psf (expect >1600psf selling price). even the serangoon ville site nearby was sold for about 835psf (minimum selling price 1400psf). queenstown 1038psf (expect >1700psf), eunosville 908psf (good price as prices moved up after this), also minimum 1500psf. i had mentioned previously that u can see from the sales data monthly, 10xxpsf and 11xxpsf mass market new launches are being snapped up rapidly. le quest recently was able to sell at 1280psf easily. given the lack of mass market sites sold recently and at low prices, it looks like TC will be sold at 12xxpsf.

i would think NP is definitely more than a mass market land site and 900psf is not a ridiculous price. at present, capitaland has no landbank and the ceo mentioned: CapitaLand to be 'a bit more aggressive' in land bidding

CapitaLand president and chief executive Lim Ming Yan said that the property firm wants to be "a bit more aggressive in its approach" to the residential market in its home base.

"We are prepared to be more aggressive, but we remain disciplined," he said.

"If you are hoping for a bargain purchase in the Singaporean residential market, then you will never get anything. You have to put in your best attempt given your view of the outlook of the market, and not take the view that you can keep a lot of reserves, put in a price and hopefully you will get it at bargain price. It will never happen."

http://www.straitstimes.com/business/property/capitaland-will-be-a-bit-more-aggressive-in-land-bidding-says-ceo

given their experience with interlace nearby, i think they know how to position their units uniquely. with the previous ceo gone, building small units is now possible for them. otherwise, it would be impossible for them to compete if they still want to build big units as the psfs are not favourable.

I can't disagree and will look forward to a potential Interlace sort of condo, but we all remember that Gillman heights was en bloc-ed at the height of the property market boom. Are we in a boom today?

To the rest of your other points, I also can't disagree with you, but my arguments continue to hold, even though an en bloc in Normanton will probably help the area that I reside, the options that a developer has today is quite different than the one presented to them six months ago in a conflicted backdrop of rising land prices vs slowing economy coupled with less immigration friendly policies.

Today's landscape:

(1) Less demand given that there were almost 15 land purchases this year through GLS, En-bloc and private treaty arrangements, we also have around 15 less bidders.

(2) More supply. According to media and agent chat, there are at least 40 en bloc in the process.

Six months ago, we had around 15 more bidders and a lot less supply. You would know better than most, we still have plenty of plum sites in the en bloc market for grabs.

bargain hunter
18-08-17, 23:10
actually i fear for how disgustingly small the units can go but looks like its an inevitable trend.

Kelonguni
19-08-17, 00:00
When every other site is looking to en bloc, what happens to actual resales supply on the market?

Laguna
19-08-17, 06:28
When every other site is looking to en bloc, what happens to actual resales supply on the market?

The impact is not as significant as the new units from these enbloc.
Say the property enbloc is 100 units, they are building the site into 300-500 units. So the new sales units available within the next 12-18 months are far more than the number of taken off.

Most of these HUDC enbloc sellers are older generations, and would like to buy into HDB or staying with children and keep the cash. Anyway, their cash will only come in 9 months later. So there is no immediate impact on the market till 9 months time.

Arcachon
19-08-17, 08:24
When every other site is looking to en bloc, what happens to actual resales supply on the market?

The resale price will go down because more people are buying.

Arcachon
19-08-17, 08:25
The impact is not as significant as the new units from these enbloc.
Say the property enbloc is 100 units, they are building the site into 300-500 units. So the new sales units available within the next 12-18 months are far more than the number of taken off.

Most of these HUDC enbloc sellers are older generations, and would like to buy into HDB or staying with children and keep the cash. Anyway, their cash will only come in 9 months later. So there is no immediate impact on the market till 9 months time.

Agree, they will put money in the Bank to depreciate, play safe when you are old.

Maybe I was young then when I made my million become greed go for more risk.

anythingwhatever
19-08-17, 09:00
The resale price will go down because more people are buying.

More people buying should mean prices going up?

Demands vs Supplies. :)

Kelonguni
19-08-17, 09:21
The impact is not as significant as the new units from these enbloc.
Say the property enbloc is 100 units, they are building the site into 300-500 units. So the new sales units available within the next 12-18 months are far more than the number of taken off.

Most of these HUDC enbloc sellers are older generations, and would like to buy into HDB or staying with children and keep the cash. Anyway, their cash will only come in 9 months later. So there is no immediate impact on the market till 9 months time.

Cannot deny that there might be a proportion that goes for resale HDB, but if resale HDB sales increase, where do those sellers who sell their HDBs live?

One thing about resale is that it is an immediate, current market, based on the push-pull between people who opt to sell and those who need to use the place immediately. It is distinctive from those who can wait years for their property to be built.

People who sell their HDBs will most likely go for private (or ECs), unless their new BTOs are ready. The other option is to rent (HDB or private). Again, those represent soaking up of vacant units in rent and sales.

Another thing is the 12-18 month before the new supply ends up on the market. But the new sale supply is not ready for immediate occupation until another 3-4 years later (building in progress). The actual future date for supply for occupation is actually 4-5 years (year 2022-2023). Again, these do not cope with the immediate demand.

Regarding the 9 month wait, there is such a thing as bridging loan if I am not mistaken. Moreover, the first enblocs of 2017 are already reaching 9 months soon.

Staying with children, I say don't count on it. Very few could successfully do it even though in theory it is one of the best options. Most try and fail.

Arcachon
19-08-17, 09:49
More people buying should mean prices going up?

Demands vs Supplies. :)

For those who believe 1 plus 1 equal 2.

HP65
19-08-17, 10:20
More people buying should mean prices going up?

Demands vs Supplies. :)

Arcachon is being sacarstic by pointing out some obvious flaws. Having said that, one does not know the future and should always be cautious when it comes to ppty investments. While enblockers (esp HUDC retirees) may not buy back a resale condo, who is to prevent the HDB seller from upgrading to the resale condo after selling his HDB to the retiree?

Personally I can share 3 anecdote (1 personal experience):-

1) HUDC enbloc (Farrer Court). Enblocker retiree bought a resale HDB nearby from a young couple with kids. Young couple went on to buy a nearby 3 bedder resale condo.

2) HUDC enbloc (Gilman). Enblocker also retiree. He however went on buy a West Coast brand new Condo. After the WC Condo price increased, he sold it and bought a resale condo at River Valley

3) HUDC Enblocker (Farrer) . Middle Age. Went on to buy an old landed at Bukit Timah. Rebuild it and move family from orchard rd condo and downgrade to stay in Bukit Timah.

patches
19-08-17, 11:51
Cannot deny that there might be a proportion that goes for resale HDB, but if resale HDB sales increase, where do those sellers who sell their HDBs live?

One thing about resale is that it is an immediate, current market, based on the push-pull between people who opt to sell and those who need to use the place immediately. It is distinctive from those who can wait years for their property to be built.

People who sell their HDBs will most likely go for private (or ECs), unless their new BTOs are ready. The other option is to rent (HDB or private). Again, those represent soaking up of vacant units in rent and sales.

Another thing is the 12-18 month before the new supply ends up on the market. But the new sale supply is not ready for immediate occupation until another 3-4 years later (building in progress). The actual future date for supply for occupation is actually 4-5 years (year 2022-2023). Again, these do not cope with the immediate demand.

Regarding the 9 month wait, there is such a thing as bridging loan if I am not mistaken. Moreover, the first enblocs of 2017 are already reaching 9 months soon.

Staying with children, I say don't count on it. Very few could successfully do it even though in theory it is one of the best options. Most try and fail.

The analysis of the demand and supply through the effect of en bloc-ing should be undertaken by one of our banks or property consultancy. Forget about speculating how these HUDC owners want to spend their money (some can argue they will buy resale flat, some say resale condo, it's akin to saying everyone likes BMW and will usually buy, we can speculate till the cows go home; so it is very difficult to predict where actual demand will go into, and following that demand serve little purpose for big picture property investors). In general, I think En blocing is an reinforcing positive market force in the market.

First 12 months of en bloc activity will generate more demand (i.e. be it resale condo, flat or landed), next 12 months, we will continue to see more demand driven by these "displaced owners" who needs immediate occupation, thereby driving up prices across the real estate (could be rental or purchases; already my friend who is an agent told me rental is picking up; this guy has been very sanguine of the rental market in the past 24 months). At that point in time, there will be new launches offered by developers who bought these en bloc. At the 24-month mark, I think this is where in the inflexion point is. If the economy is still in the doldrums phase, we may not be able to soak in these highly priced new launch (i.e. 1500-1700 psf at Serangoon Ville), then we may see the en bloc effect waning. By that point in time, there will also be less bidders because most developers who have filled up their land back. However, if the economy is on fire and changes in immigration policies, people rushing to buy record high prices of new launches, then the en bloc will continue for another 12 months. Only when the natural market forces of economy is unable to sustain the developer-push effect of en bloc that we will see the slowdown of the positive reinforcing effect of en bloc.

From my brief analysis above, we should be able to see the inflexion point in the next 16 months. What does that mean for property investors and owners, enjoy the rally then. If its the inflexion point, then one could either sell your unit during the next 16 months if you want to get out of the property game, or try to secure better rental terms for the next two years for higher yield. Having said that, both represent very different views of the medium to long term view of Singapore property.

If I've got time on my hands, I will really want to write a white paper to prove the above.

Arcachon
19-08-17, 11:55
The analysis of the demand and supply through the effect of en bloc-ing should be undertaken by one of our banks or property consultancy. Forget about speculating how these HUDC owners want to spend their money (some can argue they will buy resale flat, some say resale condo, it's akin to saying everyone likes BMW and will usually buy, we can speculate till the cows go home; so it is very difficult to predict where actual demand will go into, and following that demand serve little purpose for big picture property investors). In general, I think En blocing is an reinforcing positive market force in the market.

First 12 months of en bloc activity will generate more demand (i.e. be it resale condo, flat or landed), next 12 months, we will continue to see more demand driven by these "displaced owners" who needs immediate occupation, thereby driving up prices across the real estate (could be rental or purchases; already my friend who is an agent told me rental is picking up; this guy has been very sanguine of the rental market in the past 24 months). At that point in time, there will be new launches offered by developers who bought these en bloc. At the 24-month mark, I think this is where in the inflexion point is. If the economy is still in the doldrums phase, we may not be able to soak in these highly priced new launch (i.e. 1500-1700 psf at Serangoon Ville), then we may see the en bloc effect waning. By that point in time, there will also be less bidders because most developers who have filled up their land back. However, if the economy is on fire and changes in immigration policies, people rushing to buy record high prices of new launches, then the en bloc will continue for another 12 months. Only when the natural market forces of economy is unable to sustain the developer-push effect of en bloc that we will see the slowdown of the positive reinforcing effect of en bloc.

From my brief analysis above, we should be able to see the inflexion point in the next 16 months. What does that mean for property investors and owners, enjoy the rally then. If its the inflexion point, then one could either sell your unit during the next 16 months if you want to get out of the property game, or try to secure better rental terms for the next two years for higher yield. Having said that, both represent very different views of the medium to long term view of Singapore property.

If I've got time on my hands, I will really want to write a white paper to prove the above.

It is not easy to understand what is understood, a Bear will already be a Bear, A Bull will already be a Bull.

Tulip09
19-08-17, 14:03
The analysis of the demand and supply through the effect of en bloc-ing should be undertaken by one of our banks or property consultancy. Forget about speculating how these HUDC owners want to spend their money (some can argue they will buy resale flat, some say resale condo, it's akin to saying everyone likes BMW and will usually buy, we can speculate till the cows go home; so it is very difficult to predict where actual demand will go into, and following that demand serve little purpose for big picture property investors). In general, I think En blocing is an reinforcing positive market force in the market.

First 12 months of en bloc activity will generate more demand (i.e. be it resale condo, flat or landed), next 12 months, we will continue to see more demand driven by these "displaced owners" who needs immediate occupation, thereby driving up prices across the real estate (could be rental or purchases; already my friend who is an agent told me rental is picking up; this guy has been very sanguine of the rental market in the past 24 months). At that point in time, there will be new launches offered by developers who bought these en bloc. At the 24-month mark, I think this is where in the inflexion point is. If the economy is still in the doldrums phase, we may not be able to soak in these highly priced new launch (i.e. 1500-1700 psf at Serangoon Ville), then we may see the en bloc effect waning. By that point in time, there will also be less bidders because most developers who have filled up their land back. However, if the economy is on fire and changes in immigration policies, people rushing to buy record high prices of new launches, then the en bloc will continue for another 12 months. Only when the natural market forces of economy is unable to sustain the developer-push effect of en bloc that we will see the slowdown of the positive reinforcing effect of en bloc.

From my brief analysis above, we should be able to see the inflexion point in the next 16 months. What does that mean for property investors and owners, enjoy the rally then. If its the inflexion point, then one could either sell your unit during the next 16 months if you want to get out of the property game, or try to secure better rental terms for the next two years for higher yield. Having said that, both represent very different views of the medium to long term view of Singapore property.

If I've got time on my hands, I will really want to write a white paper to prove the above.

Well said. There will certainly be an Inflexion point if too many huge HUDC sites are sold. Even with population increase it won't be easy to sell out 10s of thousands of units at new prices and with the cooling measures in place. I think Developers may tread with caution once the next few en bloc deals are sealed, especially if that includes a few more huge sites. It seems like almost every HUDC is hoping to make it this time. Other big sites like Bayshore may also want to get on the bandwagon if the cherry seems attractive enough. Owners of aging LH are getting nervous of higher sinking fund fees and difficulty in selling with financing restrictions on buyers for these units.

patches
19-08-17, 14:16
Well said. There will certainly be an Inflexion point if too many huge HUDC sites are sold. Even with population increase it won't be easy to sell out 10s of thousands of units at new prices and with the cooling measures in place. I think Developers may tread with caution once the next few en bloc deals are sealed, especially if that includes a few more huge sites. It seems like almost every HUDC is hoping to make it this time. Other big sites like Bayshore may also want to get on the bandwagon if the cherry seems attractive enough. Owners of aging LH are getting nervous of higher sinking fund fees and difficulty in selling with financing restrictions on buyers for these units.

To clarify, I meant an inflexion point in the en bloc cycle. An inflexion point in the property cycle is another topic altogether. When you try to speak the developer talk, we need to really try to wear their shoes. For most developers, they are perma-bull. Whether they are super bull, medium bull, or half bull, they are going to be shoring their land bank up. The golden question: Should the next inflexion point in the en bloc cycle occur in the next 16 months, will that trigger for the next cycle in the property market (i.e. downtrend, uptrend or flat?).

"Newer" or "Gen-Z" plum condo sites such as Bayshore will almost find it impossible to be en bloc-ed (sorry no offence again) for multiple reasons, the most important one being, the inability for developer to stomach the expectations of Gen-Z owners. For a newer condo like Bayshore, we need another sharp uptrend euphoria that we witnessed in 2007. So if you ask me now or even after inflexion point is it possible, I think the likelihood is low.

If we take a historical measurements of past en bloc, one of the key critical reason is that en blocs usually possess higher success when the estate are of at least 25-35 years of age, and like wine, the older the better it gets, because the price differential of new vs old (or new launch-vs-resale premium) get wider to the point that developers can arbitrage through an bloc exercise.

So who knows in the next 10-20 years, maybe the likes of Bayshore will be a hit?

Tulip09
19-08-17, 14:51
To clarify, I meant an inflexion point in the en bloc cycle. An inflexion point in the property cycle is another topic altogether. When you try to speak the developer talk, we need to really try to wear their shoes. For most developers, they are perma-bull. Whether they are super bull, medium bull, or half bull, they are going to be shoring their land bank up. The golden question: Should the next inflexion point in the en bloc cycle occur in the next 16 months, will that trigger for the next cycle in the property market (i.e. downtrend, uptrend or flat?).

"Newer" or "Gen-Z" plum condo sites such as Bayshore will almost find it impossible to be en bloc-ed (sorry no offence again) for multiple reasons, the most important one being, the inability for developer to stomach the expectations of Gen-Z owners. For a newer condo like Bayshore, we need another sharp uptrend euphoria that we witnessed in 2007. So if you ask me now or even after inflexion point is it possible, I think the likelihood is low.

If we take a historical measurements of past en bloc, one of the key critical reason is that en blocs usually possess higher success when the estate are of at least 25-35 years of age, and like wine, the older the better it gets, because the price differential of new vs old (or new launch-vs-resale premium) get wider to the point that developers can arbitrage through an bloc exercise.

So who knows in the next 10-20 years, maybe the likes of Bayshore will be a hit?

As the Lease runs down and costs of maintaining the condo increases I think the owners will be more motivated to ask for a realistic price. Perhaps we are not there yet but when we reach a time when many LH condos have run down half their lease , I believe we will have a group of owners who want to unload their depreciating asset. If they wait too long, they will not be able to purchase a replacement home with the sale proceeds . Land value goes up with time but so do the cost of replacement units. And for LH, cost of topping up the lease will also affect value of the land. This will work against them.

teddybear
19-08-17, 18:57
What you said is NOT TRUE................
I am a bear to become a bull to become a bear again..........
I just follow the market - This is how we can make money..............
People who is one direction only will miss a lot of the fun and money to be made................................


It is not easy to understand what is understood, a Bear will already be a Bear, A Bull will already be a Bull.

Kelonguni
19-08-17, 20:57
People who is one direction only will miss a lot of the fun and money to be made................................

Does it also apply to those who can only see one direction such as CCR FH?

teddybear
19-08-17, 21:17
Obviously!
Like those who are always BEAR of CCR FH now..............
(They will know when the time comes how much they had missed!)


Does it also apply to those who can only see one direction such as CCR FH?

Kelonguni
19-08-17, 21:57
Not true. I am equibullish on all sectors and believe they are linked.

CCR > RCR > OCR > HDB.

The factors of city congestion for drivers have continued to improve while OCR gets crowded.

Close to dynamic equilibrium for all sectors achieved!


Obviously!
Like those who are always BEAR of CCR FH now..............
(They will know when the time comes how much they had missed!)

HP65
20-08-17, 17:34
The analysis of the demand and supply through the effect of en bloc-ing should be undertaken by one of our banks or property consultancy. Forget about speculating how these HUDC owners want to spend their money (some can argue they will buy resale flat, some say resale condo, it's akin to saying everyone likes BMW and will usually buy, we can speculate till the cows go home; so it is very difficult to predict where actual demand will go into, and following that demand serve little purpose for big picture property investors). In general, I think En blocing is an reinforcing positive market force in the market.

First 12 months of en bloc activity will generate more demand (i.e. be it resale condo, flat or landed), next 12 months, we will continue to see more demand driven by these "displaced owners" who needs immediate occupation, thereby driving up prices across the real estate (could be rental or purchases; already my friend who is an agent told me rental is picking up; this guy has been very sanguine of the rental market in the past 24 months). At that point in time, there will be new launches offered by developers who bought these en bloc. At the 24-month mark, I think this is where in the inflexion point is. If the economy is still in the doldrums phase, we may not be able to soak in these highly priced new launch (i.e. 1500-1700 psf at Serangoon Ville), then we may see the en bloc effect waning. By that point in time, there will also be less bidders because most developers who have filled up their land back. However, if the economy is on fire and changes in immigration policies, people rushing to buy record high prices of new launches, then the en bloc will continue for another 12 months. Only when the natural market forces of economy is unable to sustain the developer-push effect of en bloc that we will see the slowdown of the positive reinforcing effect of en bloc.

From my brief analysis above, we should be able to see the inflexion point in the next 16 months. What does that mean for property investors and owners, enjoy the rally then. If its the inflexion point, then one could either sell your unit during the next 16 months if you want to get out of the property game, or try to secure better rental terms for the next two years for higher yield. Having said that, both represent very different views of the medium to long term view of Singapore property.

If I've got time on my hands, I will really want to write a white paper to prove the above.

If really have time on your hand, i suggest you spend the time visiting show rooms instead of wasting your time trying to write a paper on property price trend or related papers. And if you still do it, please state that you are `Patches from condosingapore coz I will delete the report and not read it. On the 1 hand you talk about big picture property investors, next you talk about 12-16 months. Big picture investors do not even care what price movement is going to be in the next 24 mths. We look at the next 5 years, 10 years and see what the future holds for a particular country. Talking about 12-16 months is to time the market. i see you try to play down the effect of enbloc on resale or new sales. Not sure what's your agenda even if you said you are vested in this area. Maybe you would like to see prices drop further so that you can buy an investment property at a cheaper price. I'm not sure. Many try to speak like they are able to read all the signs and spot trends. Pls, if you can do it accurately, you wouldn't be sitting in front of the pc and writing the above....

Once we received our money from the developer, all the neighbours were just asking each other what were we going to do with our money. Most of us are certainly plowing the money back into properties whether it's for own stay (some only have this 1 ppty) or investment. For you to suggest it's difficult to predict where actual demand is going to be shows either you are a novice or you have a hidden agenda to prices not rise so soon.

patches
20-08-17, 17:46
If really have time on your hand, i suggest you spend the time visiting show rooms instead of wasting your time trying to write a paper on property price trend or related papers. And if you still do it, please state that you are `Patches from condosingapore coz I will delete the report and not read it. On the 1 hand you talk about big picture property investors, next you talk about 12-16 months. Big picture investors do not even care what price movement is going to be in the next 24 mths. We look at the next 5 years, 10 years and see what the future holds for a particular country. Talking about 12-16 months is to time the market. i see you try to play down the effect of enbloc on resale or new sales. Not sure what's your agenda even if you said you are vested in this area. Maybe you would like to see prices drop further so that you can buy an investment property at a cheaper price. I'm not sure. Many try to speak like they are able to read all the signs and spot trends. Pls, if you can do it accurately, you wouldn't be sitting in front of the pc and writing the above....

Once we received our money from the developer, all the neighbours were just asking each other what were we going to do with our money. Most of us are certainly plowing the money back into properties whether it's for own stay (some only have this 1 ppty) or investment. For you to suggest it's difficult to predict where actual demand is going to be shows either you are a novice or you have a hidden agenda to prices not rise so soon.

Calm down keyboard warrior, I visit showrooms, view resale units and new launches almost every week. At any one point in time have I not said what sort of investor I am. Big picture, small picture, why does it matter to you? To each its own? Why will I play down the effect of en bloc? I have already said this is a positive market impact driven by the en bloc cycle. I did play down the likelihood of Normanton Park potential en bloc, which got you very agitated. Clearly, you are attacking me for that. While I am vested in the near vicinity, I am being objective here.

Again, I have not made any assertions that I can read signs and spot trends; I suspect that you have been too defensive and reading too much. Bro, this is an online forum, and we are open to discussions which help improve our analysis and thought process. If you keep attacking people's opinions hiding behind your PC, then what is your agenda? Having an opinion is one thing. If you need to attack somebody to prove an opinion is another.

HP65
20-08-17, 18:49
Calm down keyboard warrior, I visit showrooms, view resale units and new launches almost every week. At any one point in time have I not said what sort of investor I am. Big picture, small picture, why does it matter to you? To each its own? Why will I play down the effect of en bloc? I have already said this is a positive market impact driven by the en bloc cycle. I did play down the likelihood of Normanton Park potential en bloc, which got you very agitated. Clearly, you are attacking me for that. While I am vested in the near vicinity, I am being objective here.

Again, I have not made any assertions that I can read signs and spot trends; I suspect that you have been too defensive and reading too much. Bro, this is an online forum, and we are open to discussions which help improve our analysis and thought process. If you keep attacking people's opinions hiding behind your PC, then what is your agenda? Having an opinion is one thing. If you need to attack somebody to prove an opinion is another.

"Keyboard warrior" hahaha....wonder who is the real keyboard warrior trying to play down HUDC enbloc effect. Uncle here while now do not own any more HUDC condos, has been through a couple of enbloc (ex-HUDC) to know the boon and bane of Enbloc and what do enblockers do with the monies collected. So don't come and pretend pretend say you are objective (ownself already admit you tried to play down effect of Normanton enbloc potential so you are already bias so how can you be objective?) and in the guise of trying to analysis this and that so as to be able to make informed 'big investor decisions'. End of the day, property is not for everyone. But it's also a relatively easy game to play in the long run if you have holding power of 5 years or more. 12 mths, 16 mths... you are gambling so no amount of analysis is going to turn it into a wise 'calculated move'. So don't kid yourself.

bargain hunter
20-08-17, 19:45
#15-155 NORMANTON PARK, 1 NORMANTON PARK – D05 has been put up for SHERIFF'S SALE

Apt, approx. 1,270sq ft, 99 yrs wef 1/11/1977, 3 b/rms

for Colliers Auciton on 31 Aug 2.30pm.

Tulip09
20-08-17, 19:53
#15-155 NORMANTON PARK, 1 NORMANTON PARK – D05 has been put up for SHERIFF'S SALE

Apt, approx. 1,270sq ft, 99 yrs wef 1/11/1977, 3 b/rms

for Colliers Auciton on 31 Aug 2.30pm.

Nice no. Wonder if there will be a ' bidding war'. I hear there was an unofficial ' auction ' for a Florence Regency unit recently at the void deck ,in view of the en bloc

patches
20-08-17, 20:50
"Keyboard warrior" hahaha....wonder who is the real keyboard warrior trying to play down HUDC enbloc effect. Uncle here while now do not own any more HUDC condos, has been through a couple of enbloc (ex-HUDC) to know the boon and bane of Enbloc and what do enblockers do with the monies collected. So don't come and pretend pretend say you are objective (ownself already admit you tried to play down effect of Normanton enbloc potential so you are already bias so how can you be objective?) and in the guise of trying to analysis this and that so as to be able to make informed 'big investor decisions'. End of the day, property is not for everyone. But it's also a relatively easy game to play in the long run if you have holding power of 5 years or more. 12 mths, 16 mths... you are gambling so no amount of analysis is going to turn it into a wise 'calculated move'. So don't kid yourself.

En bloc cycle does not mean every piece of site go to market will get a bidder. We have seen how many failures in the past decade. If you own a unit at Normanton, dont feel too emotional just because some at the fence do not think there is as high a potential as other HUDC developments. One of my friends who have been staying there for over 30 years tell me how desperate they are to get rid off this property. Wish you (and my friend) luck and hope you can get en bloc.

patches
20-08-17, 20:55
Nice no. Wonder if there will be a ' bidding war'. I hear there was an unofficial ' auction ' for a Florence Regency unit recently at the void deck ,in view of the en bloc

Yes, there were a few transactions at Florence Regency last few months... hmm... Surprising though...

HP65
21-08-17, 08:58
En bloc cycle does not mean every piece of site go to market will get a bidder. We have seen how many failures in the past decade. If you own a unit at Normanton, dont feel too emotional just because some at the fence do not think there is as high a potential as other HUDC developments. One of my friends who have been staying there for over 30 years tell me how desperate they are to get rid off this property. Wish you (and my friend) luck and hope you can get en bloc.

I am only interested in all enbloc insofar it removes supply...and cheap supply from the market. It then recycles the money back into the economy and mostly back to properties in 1 way or another (new sale, resale, HDB, OCR, RCR, CCR, Condo, Landed etc) While it's not 100% recycled, i dare say more than 50% goes back to the system.

So you if you wish me luck, you are also wishing all property investors luck. Only those who wishes to see prices drop would hope for enbloc to fail and usually their agenda is so that they can enter the market for investment properties at a cheaper price point.

I have stated before i am vested in properties (D2, 3, 10 and overseas) but not Normanton. Nevertheless, i am happy to see this go enbloc and thus disagree with your shallow brushing off of this site as undesirable for reasons i have no clue. Good catchment of high tech workers, proximity to MRT stations, potential to launch 3 bedder (1000 sqf at $1,500 psf min), near to expressway, education institutions for locals and foreigners....man....i feel like I'm a ppty agent peddling this condo....and in fact, does anybody want to sell me a unit at Normanton Park??

By the way, you have not shared where else can i find brand new LH condo at $1000 psf for 1000 sqf units? Come show me where can i find it near Normanton and I'll shut my mouth.

patches
21-08-17, 10:17
I am only interested in all enbloc insofar it removes supply...and cheap supply from the market. It then recycles the money back into the economy and mostly back to properties in 1 way or another (new sale, resale, HDB, OCR, RCR, CCR, Condo, Landed etc) While it's not 100% recycled, i dare say more than 50% goes back to the system.

So you if you wish me luck, you are also wishing all property investors luck. Only those who wishes to see prices drop would hope for enbloc to fail and usually their agenda is so that they can enter the market for investment properties at a cheaper price point.

I have stated before i am vested in properties (D2, 3, 10 and overseas) but not Normanton. Nevertheless, i am happy to see this go enbloc and thus disagree with your shallow brushing off of this site as undesirable for reasons i have no clue. Good catchment of high tech workers, proximity to MRT stations, potential to launch 3 bedder (1000 sqf at $1,500 psf min), near to expressway, education institutions for locals and foreigners....man....i feel like I'm a ppty agent peddling this condo....and in fact, does anybody want to sell me a unit at Normanton Park??

By the way, you have not shared where else can i find brand new LH condo at $1000 psf for 1000 sqf units? Come show me where can i find it near Normanton and I'll shut my mouth.

Why are we so similar in our investments yet possess such different opinions? I am vested in D2 and D10. I did not say that I am not happy for Normanton to go en bloc, all I said was to speculate on its likelihood. What shadow here and there? If I wish the price to go lower so I can buy therefore I made a post to downplay the likelihood? What sort of logic is that?

You clearly do not read, or have difficulty reading clearly. I have said secondary resale in my previous posts for 1000psf transactions around Normanton's vicinity.

So by writing one post and sharing with the forum that I think the likelihood of Normanton's en bloc success is low, you think it will sway or influence developer or the general public's opinion? I thank you for thinking what influence I can carry.

You can peddle however much you want, whichever property segment you like, but does not prevent others from having an opinion. Continue bashing down others in public forum through personal attacks and self-validation mate, but you know this isn't going to have your arguments validated.

HP65
21-08-17, 11:41
Why are we so similar in our investments yet possess such different opinions? I am vested in D2 and D10. I did not say that I am not happy for Normanton to go en bloc, all I said was to speculate on its likelihood. What shadow here and there? If I wish the price to go lower so I can buy therefore I made a post to downplay the likelihood? What sort of logic is that?

You clearly do not read, or have difficulty reading clearly. I have said secondary resale in my previous posts for 1000psf transactions around Normanton's vicinity.

So by writing one post and sharing with the forum that I think the likelihood of Normanton's en bloc success is low, you think it will sway or influence developer or the general public's opinion? I thank you for thinking what influence I can carry.

You can peddle however much you want, whichever property segment you like, but does not prevent others from having an opinion. Continue bashing down others in public forum through personal attacks and self-validation mate, but you know this isn't going to have your arguments validated.

Ok, case closed. There is no new LH condo that is below or in the region of $1,000 psf and 1,000 sqf. I just want to challenge your notion that Normanton enbloc success is low due to the fact 1,000 sqf units can't be sold at $1,500 psf (as suggested by Bargain Hunter which I agree is possible) because secondary market is going for $1,000 in the vincinity. I am basically putting it across to you that not all investors compare secondary vs primary units prices directly. There are investors who will just buy brand new condos regardless of the premium over secondary market units. I know because my wife is one of those. Buying for own stay is a totally different matter.

I read your posts very carefully...I'm just do not agree with your specific sweeping statements and reasons why Normanton enbloc success would be low. It may not succeed (for whatever reasons) but not because developers cannot price new 1,000 sqf units for $1,500 psf (in your own words "it will be a stretched' ) or that this location does not have enough pull factor for new buyers.

No I can't stop anyone from having an opinion and likewise nobody can't stop me from pointing out rubbish opinions :D

patches
21-08-17, 12:36
Ok, case closed. There is no new LH condo that is below or in the region of $1,000 psf and 1,000 sqf. I just want to challenge your notion that Normanton enbloc success is low due to the fact 1,000 sqf units can't be sold at $1,500 psf (as suggested by Bargain Hunter which I agree is possible) because secondary market is going for $1,000 in the vincinity. I am basically putting it across to you that not all investors compare secondary vs primary units prices directly. There are investors who will just buy brand new condos regardless of the premium over secondary market units. I know because my wife is one of those. Buying for own stay is a totally different matter.

I read your posts very carefully...I'm just do not agree with your specific sweeping statements and reasons why Normanton enbloc success would be low. It may not succeed (for whatever reasons) but not because developers cannot price new 1,000 sqf units for $1,500 psf (in your own words "it will be a stretched' ) or that this location does not have enough pull factor for new buyers.

No I can't stop anyone from having an opinion and likewise nobody can't stop me from pointing out rubbish opinions :D

Glad that you find closure in your defensiveness. We are not trying to understand the psychology of buyers who prefer new launch over secondary. The bigger question is: is there sufficient demand to fulfill 1500 homes in that region in the next few years? A sweeping statement is not backed by any analysis, thought process or facts. I have already told you there are secondary places trading 800 to 1000 psf closer to Pasir Panjang. From the onset, I have clearly said its secondary market and you tried to attack me with new launch. So mate, if you been reading real clearly and carefully, you will not have inserted false accusations into my arguments.

Again, I also cannot stop others from having a myopic view in investments and property. Thankfully, this is a zero sum game.

reporter2
29-08-17, 23:53
Normanton Park makes second bid at selling en bloc

AUG 22, 2017

It is setting an $800m reserve price; it failed in first bid in 2015

Grace Leong


Owners at former HUDC estate Normanton Park hope it will be second-time lucky in its collective-sale bid at an $800 million reserve price.

As the number of sales en bloc continued to rise here, the owners mounted a military-style operation to get the 488-unit project near Kent Ridge Park on the market in double-quick time.

Mr S. S. Chopra, the sale committee chairman and a retired navy colonel, said: "It took a mere 11 days for us to reach the 80 per cent consensus and a further two weeks to launch the tender today.

"This very quick and short duration... was achieved through the enthusiasm of owners and great collaboration between the marketing agent, lawyers and sale committee."

The Normanton Park owners are among those capitalising on what market observers call the early stages of collective-sale fever, which began heating up after property cooling measure adjustments in March boosted buying sentiment, and limited sites offered in the Government's land sale programme for the second half.

It failed in its previous bid in 2015.

Normanton Park will launch a collective sale at a minimum price of $800 million after more than 80 per cent of owners approved the collective-sales agreement (CSA) in less than two weeks. The tender will close on Oct 5 at 3pm.

This is one of the highest reserve prices after Tampines Court, a privatised HUDC estate, is said to have received a bid of $970 million with conditions attached. That deal is not officially closed yet.

So far this year, seven successful collective sales worth $2.5 billion have been mounted, compared with just three for the whole of last year totalling about $1 billion.

Based on the reserve price, each Normanton Park unit owner could get between $1.6 million and $1.8 million. This translates to a land rate of about $898 per sq ft per plot ratio (psf ppr), which includes a differential premium for intensification of the site of about $225.3 million, and a top-up premium of $220.6 million for a fresh 99-year lease.

Of interest is whether the bids will go higher than the $800 million reserve price, Mr Nicholas Mak, head of research and consultancy at ZACD Group said.

"There's a possibility that bids could be higher than $800 million. $898 psf ppr is near the high end of the range for land prices in that location. In today's market, there may be some developers who are willing to pay even higher than reserve price in order to secure attractive sites to replenish their land bank. But as more collective-sale developments come to market, there will also be more land available to satisfy their hunger.''

Exclusive marketing agent Knight Frank Singapore's Ian Loh noted that there has not been any new high-rise residential development launched within a 1.5km radius in the last 15 years, leading to low supply in its locality.

"The new high-rise development could potentially comprise more than 1,200 new residential units of 100 sq m on the site, and home owners should be able to enjoy lush greenery and unblocked views. As such, we expect... strong interest," Mr Loh, Knight Frank's executive director & head of investment and capital markets, said.

reporter2
29-08-17, 23:57
Normanton Park on sale with S$800m reserve price

Owners stand to get S$1.6m to S$1.8m per unit or about 50% more than if they were to sell their units individually

August 22, 2017

KALPANA RASHIWALA


THE tender for the collective sale of Normanton Park, near Science Park and Kent Ridge Park, has been launched with a reserve price of S$800 million, which translates to S$898 per square foot per plot ratio (psf ppr).

This is the eleventh tender for a collective sale to be launched this year.

Normanton Park's unit land price of S$898 psf ppr is inclusive of two payments that the developer of the 660,999 square foot site will have to make to the state.

One is an estimated differential premium of S$225.3 million for intensification of the site based on the maximum permissible gross floor area of 1,388,099 sq ft, based on the March 1 development charge rates. The other payment is an estimated S$220.6 million to top up the site's lease to 99 years, assuming the top-up is done late next year when the balance lease will be 58 years.

Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for "residential" use with a gross plot ratio of 2.1.

A privatised housing estate originally built in 1977 for military personnel and their families, Normanton Park comprises 13 residential blocks of 488 units ranging from 1,270 sq ft to 1,550 sq ft.

Based on the reserve price, owners stand to receive between approximately S$1.6 million and S$1.8 million per unit - which is about 50 per cent more than if they were to sell their units individually in the current market, said Ian Loh, Knight Frank Singapore executive director and head of investment and capital markets.

The property consulting group is marketing the en bloc sale through a tender that closes on Oct 5, 2017.

"The new high-rise development on the site could potentially have close to 1,290 homes of an average size of 100 sq m (1,076 sq ft) gross floor area," said Mr Loh.

"Residents should be able to enjoy views of the lush greenery and unblocked views to the city and the sea. Thus, we expect the property to attract strong interest in view of its exclusive location and positive site attributes."

Normanton Park is near educational institutions including Anglo-Chinese School (Independent), Fairfield Methodist primary and secondary schools, National University of Singapore, Singapore Polytechnic and Insead.

The wave of collective sites is set to continue and will feed land-hungry developers that have been paying bullish prices for private residential sites at state tenders as well as private-sector collective sales.

Tan Hong Boon, JLL regional director for capital markets, commented that in addition to the 11 collective sale sites launched for tender year to date, "we believe there are another 60 or so collective sales, mostly residential at various stages of progress - in both small and large developments".

Some market watchers are concerned about a build-up in supply of units that will be launched in due course from new projects on collective-sale sites. Derek Tan, senior vice-president for group equity research at DBS, highlights that about 6,400 new private homes will be generated on collective sale sites sold last year and so far this year (up to Serangoon Ville).

"Launches of the new projects on these sites will straddle 2018 and 2019. Supply is certainly building up on the non-Government Land Sales (GLS) side. The key is whether new home buying demand can be sustained at current levels."

Mr Tan also noted that on the GLS front, some of the projects with high land prices such as Stirling Road and Toh Tuck Road are likely to be launched in H1 next year and they will "provide some indication as to whether the market is willing to accept a higher price".

However, Savills Singapore research head Alan Cheong argues that the collective sales since 2016 will cause some "displacement" in the "physical or spot property market" as the current residences on these sites are pulled out of the existing housing stock. According to JLL's analysis, the collective sale sites sold in 2016 and YTD 2017 (up to Serangoon Ville) have on them 1,438 residential units.

Explains Mr Cheong: "For instance, some of those who used to live in privatised HUDC estates that have been sold en bloc might move into a HDB resale flat; and the seller of the flat might perhaps upgrade to a private condo.

"This sort of displacement will create demand for private homes in the physical market. However, the new homes that will be come up on the projects sold through en bloc sales will be ready only in say, 2020.

"So there may be a shortage in the physical market until then; this, coupled with high land prices paid for both GLS and collective sale sites, points to higher private home prices."

bargain hunter
05-10-17, 22:24
Kingsford awarded Normanton Park for S$830.1m or S$969 psf ppr
THU, OCT 05, 2017 - 9:24 PM
fa-normanton-20171005.jpg Kingsford Huray Development has been awarded the Normanton Park collective sale site at a price of S$830.1 million. PHOTO: KNIGHT FRANK
KINGSFORD Huray Development has been awarded the Normanton Park collective sale site at a price of S$830.1 million.

This works out to S$969 per square foot per plot ratio inclusive of differential premium and lease upgrading premium.

Normanton Park, which is near Science Park and Kent Ridge Park, is on a 660,999 square foot site that has a balance lease term of about 59 years.

Knight Frank marketed the collective sale of Normanton Park through a tender that closed on Thursday.


Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for "residential" use with a gross plot ratio of 2.1.

SEE ALSO: Cairnhill Mansions to be launched for en bloc sale for S$362m




A privatised housing estate originally built in 1977 for military personnel and their families, Normanton Park comprises 13 residential blocks of 488 units ranging from 1,270 sq ft to 1,550 sq ft.

"Each owner will stand to receive a gross sale price of approximately S$1.68 million to S$1.86 million upon a successful sale, which is subject to several conditions being met, including an order of sale by the Strata Titles Board or High Court," Knight Frank said in a release on Thursday night.

Normanton Park is near educational institutions including Anglo-Chinese School (Independent), Fairfield Methodist primary and secondary schools, National University of Singapore, Singapore Polytechnic and Insead.

The new high-rise development on the site could potentially have close to 1,290 homes of an average size of 100 sq m (1,076 sq ft) gross floor area.

http://www.businesstimes.com.sg/companies-markets/kingsford-awarded-normanton-park-for-s8301m-or-s969-psf-ppr

HP65
05-10-17, 22:58
Why are we so similar in our investments yet possess such different opinions? I am vested in D2 and D10. I did not say that I am not happy for Normanton to go en bloc, all I said was to speculate on its likelihood. What shadow here and there? If I wish the price to go lower so I can buy therefore I made a post to downplay the likelihood? What sort of logic is that?

You clearly do not read, or have difficulty reading clearly. I have said secondary resale in my previous posts for 1000psf transactions around Normanton's vicinity.

So by writing one post and sharing with the forum that I think the likelihood of Normanton's en bloc success is low, you think it will sway or influence developer or the general public's opinion? I thank you for thinking what influence I can carry.

You can peddle however much you want, whichever property segment you like, but does not prevent others from having an opinion. Continue bashing down others in public forum through personal attacks and self-validation mate, but you know this isn't going to have your arguments validated.

Guess you are gonna say “I said low probability, not no probability”....or maybe your well wishes worked for your friend!

Now I wonder how much Kingsford is gonna sell the units for? Patch, base on your analysis, what do you reckon? Oh, you think nobody is gonna buy a place here.

Kelonguni
05-10-17, 23:16
Proof of concept for Leasehold 99 sales.

61 Years left, targeted selling price of $605 PSF PPR.



Normanton Park condo to go en bloc, largest local deal since 2007 if successful

Normanton Park condominium has been put up for collective sale, with a reserve price in the region of $840 million. ST PHOTO: CHEW SENG KIM


Published1 hour ago

Wong Siew Ying


SINGAPORE - Normanton Park condominium located near Kent Ridge Park will be put up for collective sale next Thursday (Oct 22) after more than 80 per cent of the owners agreed to the sale.

There are 488 units in the condominium project - made up of eight low-rise blocks and five 23-storey towers.

The Straits Times understands that the reserve price is in the region of S$840 million, making it one of the largest en bloc deals to be launched in Singapore in recent years.

Mount Everest Properties, which is marketing the collective sale said this translates to a land cost of about S$605 per sq ft per plot ratio.

Size of the units in the development range from 1,270 sq ft to 1,550 sq ft, and the marketing agent said each owner will stand to pocket S$1.6 million to S$1.7 million on average if the deal goes through.

Normanton Park, a 99-year leasehold project, has 61 years remaining on its tenure.

"We will be speaking to some developers with the objective of getting them to form a consortium to invest and to bid for this site together," said project consultant Dillon Loi of Mount Everest Properties.

Mr Loi said part of the strategy includes reaching out to foreign developers, including those in China.

Under the Urban Redevelopment Authority's Master Plan 2014, the over 660,000 sq ft site is zoned for residential use with a 2.1 plot ratio.

The plot could potentially yield 1,388 residential units based on an average size of 1,000 sq ft.

The trend of ageing population and rising demand for quality healthcare could provide a fillip to sales.

"We are actually very near to NUH and Alexandra Hospital as well, so a great angle is to brand the new development here as a wellness village with medical facilities," added Mr Loi.

To this end, the marketing agent intends to approach private medical groups in Singapore to team up with the property developer to drive the proposal.

The tender for the collective sale will close on Jan 19.

2 years delayed, but finally sweetness.

reporter2
05-10-17, 23:21
www.channelnewsasia.com/news/singapore/normanton-park-sold-en-bloc-for-s-830-1-million-9284010

Normanton Park sold en bloc for S$830.1 million


05 Oct 2017 10:14PM

SINGAPORE: Normanton Park has been sold to Kingsford Huray Development for S$830.1 million, the latest in a flurry of en bloc sales sealed this year.

The collective sale price, which translates to a land price of approximately S$969 per square foot per plot ratio (psf ppr), is the highest land rate for a 99-year leasehold collective sale site this year, said marketing agent Knight Frank in a news release on Thursday (Oct 5).

Each home owner will stand to receive about S$1.68 million to S$1.86 million.

Kingsford will have to fork out a premium of about S$231.1 million to renew the lease for another 99 years, and top up about S$283.4 million to redevelop the site to a gross plot ratio of 2.1.

A public tender was launched on Aug 22 and closed on Oct 5, and 87.3 per cent of the owners have consented to the sale.

The gross development value for the site is estimated at S$2.23 billion, said Mr Ian Loh, executive director and head of investment and capital markets at Knight Frank. The new high-rise development could potentially house more than 1,200 new residential units of 100 sq m.

“New homeowners can potentially enjoy lush greenery views and unblocked views to the city,” Mr Loh added.

Normanton Park, a former government housing project located off Ayer Rajah Expressway, was originally built in the mid-1970s for military personnel and their families. The 40-year-old development has 13 residential blocks of 488 apartment units with a site area of 61,408.9 sq m.

“We could not have done it without the support of the majority of owners. The sale committee thanks them as well,” said Mr Sukhvinder S Chopra, chairman of the sale committee and a retired colonel from the Singapore navy.

The sale comes a day after Amber Park was sold for S$906.7 million in Singapore’s largest freehold collective sale by dollar value.

reporter2
09-10-17, 13:01
Normanton Park sold en bloc for $830.1 million

Oct 6, 2017

Grace Leong


Normanton Park estate near Kent Ridge Park has been sold for $830.1 million in one of the biggest collective sale deals seen here, it was announced last night.

The price paid by Chinese firm Kingsford Huray Development is the highest land rate - that refers to price per square foot per plot ratio - for a 99-year leasehold collective sale site this year.

It was also more than $30 million over the reserve price.

Each owner at the 488-unit former HUDC estate will get a gross price of between $1.68 million and $1.86 million if certain conditions are met.

The huge deal is seen as a property market game changer for bigger sites.

"This sale changes the assumption that there may not be appetite among developers for the big sites," said Dr Lee Nai Jia, head of research at Edmund Tie & Company.

"Now, even the bigger sites are attracting developers, especially if there is big redevelopment potential. And this site has merits. It is close to the Buona Vista growth story."

The winning bid comes with an estimated $231.1 million additional payment to top up the lease to 99 years.

There will also be a fee of about $283.4 million to redevelop the site to a gross plot ratio of 2.1 based on the maximum permissible gross floor area of about 1.39 million sq ft.

This translates to a land price of about $969 per square foot per plot ratio.

Mr Sukhvinder Chopra, chairman of the sale committee and a retired navy colonel, said last night: "The sale committee received several submissions and worked very closely with the marketing agent and lawyers.

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"We deliberated all submissions carefully and the decision to award to Kingsford was unanimous."

"The sale is subject to government approval of the outline planning permission and the lease top-up," he added. More than 80 per cent of the owners consented to the sale within just 11 days of the first signature.

A public tender was launched on Aug 22, and closed on Oct 5 with a reserve price of $800 million.

Normanton Park comprises 488 units in 13 blocks, with a site area of 660,999 sq ft.

Located close to nature parks, it was built in the mid-1970s for the Singapore Armed Forces.

Mr Ian Loh, executive director and head of investment and capital markets at Knight Frank, said: "The gross development value for this project is estimated at $2.23 billion. The new high-rise development could potentially house more than 1,200 new residential units of 100 sq m."

reporter2
09-10-17, 13:38
EN BLOC FEVER

Kingsford Huray bags Normanton Park for S$830.1m

Oct 06, 2017


KINGSFORD Huray Development, owned by Chinese-citizen-turned-Singaporean Cui Zhengfeng, has been awarded the Normanton Park collective sale site at S$830.1 million.

This works out to S$969 per square foot per plot ratio (psf ppr) inclusive of two payments that Kingsford will have to make to the state - a lease upgrading premium and a differential premium.

The land rate is the highest achieved for a 99-year leasehold collective sale site this year.

Located near Science Park and Kent Ridge Park, Normanton Park sits on a 660,999 square foot site that has a balance lease term of about 59 years.

Kingsford's breakeven cost is estimated at around S$1,600 psf and assuming a profit margin of 10 per cent, the average selling price of units in the new development on the site would be around S$1,785 psf.

Knight Frank marketed the collective sale of Normanton Park through a tender that closed on Thursday. Its head of investment and capital markets, Ian Loh, said last night that "we received several submissions", but declined to elaborate.

According to JLL, inclusive of Normanton Park, a total of 16 collective sale transactions have been inked so far this year totalling S$5.843 billion across all property segments - up from three transactions amounting to just over S$1 billion last year. In the peak year of 2007, 88 deals were done at S$11.516 billion.

Said Mr Loh of Knight Frank: "The gross development value for this project is estimated at S$2.23 billion. The new high-rise development could potentially house more than 1,200 residential units of 100 square metres, and new homeowners can potentially enjoy lush greenery views and unblocked views to the city."

The price achieved is higher than the reserve price of S$800 million set in the collective sale agreement. Owners will stand to receive a gross sale price of about S$1.68 million to S$1.86 million per unit upon a successful sale, subject to several conditions being met, including an order of sale by the Strata Titles Board or High Court.

So far, owners controlling 87.3 per cent of the share value and 87.34 per cent of strata area in the development have signed the collective sale agreement.

A privatised housing estate originally built in 1977 for military personnel and their families, Normanton Park comprises 13 residential blocks of 488 apartments ranging from 1,270 sq ft to 1,550 sq ft.

Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for "residential" use with a gross plot ratio of 2.1.

Knight Frank said on Thursday night that the lease upgrading premium to top up the site's lease to 99 years is estimated at S$231.1 million; the differential premium will be about S$283.4 million to redevelop the site to 2.1 plot ratio based on the maximum permissible gross floor area of about 1.39 million sq ft.

Normanton Park is close to educational institutions including Anglo-Chinese School (Independent), Fairfield Methodist primary and secondary schools, the National University of Singapore, Singapore Polytechnic and Insead.

Sukhvinder S Chopra, chairman of Normanton Park's sale committee, said the "committee received several submissions and worked very closely with the marketing agent and lawyers".

"We deliberated on all the submissions carefully and the decision to award Kingsford was unanimous. The sale committee was formed on July 29, and it took us a mere 10 weeks to conclude the sale. We could not have done it without the support of the majority of owners."

Last week, Kingsford was beaten into second place by a GuocoLand-Guoco Group tie-up at a state tender for a commercial site along Beach Road. The winning bid of S1.622 billion or S$1,706 psf ppr was 3.2 per cent higher than Kingsford Huray's bid of nearly S$1.572 billion.

Kingsford's developments in Singapore include the Kingsford Waterbay riverfront condo in Upper Serangoon View and the Kingsford Hillview Peak project.