En-bloc sale offers for Lakepoint Condo below reserve price

En-bloc sale offers for Lakepoint Condo below reserve price

Dec 23, 2021

OFFERS for en-bloc hopeful Lakepoint Condominium fell short of its reserve price as developers start to move more cautiously in light of new cooling measures.

It has closed its tender and is now in a "private treaty negotiation process", PropNex Realty said in a statement on Wednesday (Dec 22) night. The 99-year leasehold was launched for collective sale with a reserve price of S$640 million on Oct 21 this year.

Policy changes, including higher additional buyer's stamp duty (ABSD) rates, were implemented on Dec 16 to dampen exuberance in the housing market. Developers are now subject to 35 per cent ABSD, up from 25 per cent previously. Property analysts said that this is likely to make developers more cautious when bidding for land and take the wind out of the en-bloc fever, according to earlier reports.

Tracy Goh, head of investment and collective sales at PropNex, said that the 10-week private treaty negotiation process will give interested parties "ample time" to review their plans and strategies, in light of the new cooling measures. "We remain cautiously optimistic about the collective sale tender given the attractive site location and the limited new private housing supply in the immediate areas."

Lakepoint Condominium, which comprises 309 residential units, occupies over 562,286 sq ft. Under the 2019 Masterplan, the site has a plot ratio of 1.4 and is zoned for residential use. The site is near the Jurong Lake District and within walking distance to the Lakeside MRT station.