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Based on URA's data, units in Mayfair Gardens (the low-rise condo located between Gardenvista and Blossomvale) are going at around 500+ psf. Can it be considered as "good buy" in today's market and does it has any potential for redevelopment?
Thanks!
cost at least a million now
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En bloc sale for Mayfair Gardens
Joyce Teo
Property Correspondent
The Straits Times
Monday, 21 December 2009, 9.17 pm
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The en bloc market is showing more signs of life with owners of Mayfair Gardens in Rifle Range Road being the latest to put their estate up for sale. -- Photo: CKS Property Consultants
The en bloc market is showing more signs of life with owners of Mayfair Gardens in Rifle Range Road being the latest to put their estate up for sale.
They want $210 million or more for their 99-year leasehold site, which translates to about $857 per sqft of potential gross floor area.
That would allow owners of the 124-unit development to reap between $1 million and $2.1 million each, depending on the size of their units.
In March, just over 80% of owners backed a sale but they wanted to wait for the market to perk up before launching.
Their $210-million price tag also includes an estimated $40 million for development charge and the topping of the site's lease to 99 years.
CKS Property Consultants, which brokered the Dragon Mansions collective sale - the only one done this year - is the marketing agent.
Hi anybody knows the land size and plot ratio please?
I don't understand the economics of en bloc sales like this one. the owner is getting about 700 psf for their condos, but after the en bloc where will they be staying. the money they get is too low to buy a condo near by. they have to move to JB to get their standard of living back.
what is wrong with this picture?
The economics of en bloc sale is based on the logic that:Quote:
Originally Posted by stalingrad
"Sellers will be able to achieve a price which is higher than if sold individually".
After selling their condo, their money may be too low to buy a new condo nearby of equivalent size; but they can still buy an old condo nearby of equivalent size and have some cash left.
This is because the old condos nearby "are still priced individually below an en bloc sale".
For example, the last transacted price of Mayfair Garden was around $1.2 million to $1.3 million.
On the other hand, if they are able to achieve their target price of $210 million, each unit will get on average $1.7 million.
They can move to e.g. Sherwood Towers (1830 sf) and have spare change left.
So, it is a gain of arbitrage. But that gain should be pretty small, not worth the trouble of moving homes, in my view. the recent case of former residents of gillman heights complaining about capitaland suggests that many en bloc sellers are hoping to get back to their former locations. they are just dreaming.Quote:
Originally Posted by jlrx
Yes. Not worth the trouble for those staying there.Quote:
Originally Posted by stalingrad
The problem with Mayfair Gardens is that their plot ratio is only 1.4.
Their compensated psf ppr is only approximately 1.4 x $700 psf = $980 psf.
If they have a higher plot ratio like 2.8, it would be much more worthwhile (provided their existing buildup is the same).
Forgive me if I sound stupid. Compensation psf ppr is 980, as you calculated, only if the maximum plot ratio is 1.4, but the current plot ratio is 1. I believe the current (built-up) plot ratio is close to 1.4, if not exactly 1.4. in that case, they are getting only 700 psf. If so, they can only buy HDB only after en bloc?Quote:
Originally Posted by jlrx
Why do you care so much about what other ppl can or cannot afford? Some ppl can even sell at a loss and still upgrade. Anyway as long as 80% of the residents there have made their decision, who are you judge from the sidelines?Quote:
Originally Posted by stalingrad
If you are trying to plan for your future, I suggest you buy FH landed, only then would you have absolute control of when to sell and at how much.
You are right! :scared-4:Quote:
Originally Posted by stalingrad
Based on average size of 1,745 sf, the current built-up is 1,745 sf x 124 units = 216,380 sf.
Compared to their plot area of approximately 175,029 sf, the existing built-up ratio is 1.236.
Which means their compensated psf is actually (1.4 / 1.236) x $700 = $790 psf.
Multiply this by 1,745 sf, the average compensation per unit is $1.38 million, which is almost the same as the current individual unit market price! :scared-4:
Multiply by 124 units = $170 million (which is $210 million subtract $40 million development charge + differential premium).
What's going on? :confused:
Could the $210 million be "exclusive" rather than "inclusive" of the $40 million development charge and differential premium? :confused:
Otherwise really a meaningless en bloc. :scared-5:
No, I think 170 million is the correct figure. That is what the current residents are likely to get if the en bloc sale flies. It may not even fly.
that is why I said I did not understand the economics. The residents probably are too stupid to know what they are getting into. They probably signed on the dotted lines after a bout of euphoria when comparing what they are getting and what they paid 20 years ago. They never thought about where they would live after laughing all the way to the bank. That is the same mistake that gilman heights residents made.
BusinessTimesQuote:
Originally Posted by jlrx
CKS Property Consultants has launched Mayfair Gardens, in Rifle Range Road, for tender. The asking price starts from $210 million, with the winner expected to fork out a further $40 million as a development charge and to top up the site's lease to 99 years.
THE en bloc market is showing more signs of life with owners of Mayfair Gardens in Rifle Range Road being the latest to put their estate up for sale.
They want $210 million or more for their 99-year leasehold site, which translates to about $857 per sq ft of potential gross floor area.
That would allow owners of the 124-unit development to reap between $1 million and $2.1 million each, depending on the size of their units.
In March, just over 80 per cent of owners backed a sale but they wanted to wait for the market to perk up before launching.
Their $210-million price tag also includes an estimated $40 million for development charge and the topping of the site's lease to 99 years.
CKS Property Consultants, which brokered the Dragon Mansions collective sale - the only one done this year - is the marketing agent.
the above is from straitstimes.
one of them is wrong but I trust BT moreQuote:
Originally Posted by stalingrad
double postQuote:
Originally Posted by stalingrad
either way, I will say that newspapers in Singapore are not reliable. the reporters are worse, most of whom are young men or women paid slightly more than 1000 per month.Quote:
Originally Posted by andy
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Mayfair Gardens available for en bloc sale
H88
Tuesday, 22 December 2009, 13:36
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Have you $250M to spare? If so, you can give residents of Mayfair Gardens a nice Christmas present! They are looking at a minimum bid of $210m for the 124-unit condo along Rifle Range road in Bukit Timah. The winner also needs to cough up an extra $40M for development charges and to top up the lease to 99 years. Interested?
For those of you unfamiliar with that part of town, it's the 'ass-end' of Bukit Timah Road (think Bukit Panjang/Clementi not Newton/Orchard).
For $250m, it works out to $857psf ppr for the 208,475 psf, 124-unit condo with a gross plot ratio of 1.4. Analysts say that will work out to a selling price of $1,300 psf. Nearby units are selling for around $650 to $1,000psf.
Location-wise, there's a Malaysian railway track right next to it. Unless they build some tough sound-proof walls, the peaceful serene surrounds will occasionally be broken by the chugging of the state-of-the-art, high-speed rail that is KTM. Apart from that, it's pretty close to Beauty World and the Bukit Timah schools of Methodist Girls, Nanyang Girls, NJC and Hwa Chong Institution.
Tender closes on 14 January 2010, so bring your chequebooks and contact CKS, who were incidentally behind 2009's only en bloc - Dragon Mansion.
I guess the enbloc failed? That's explains the number of units up for sale now.