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Thread: Mayfair Gardens (D21, 99)

  1. #1
    Nike
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    Default Mayfair Gardens (D21, 99)

    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!
    Last edited by Nike; 26-06-07 at 13:45.

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    cost at least a million now

  3. #3
    F01 N54 Sheer Driving Pleasure Reporter's Avatar
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    En bloc sale for Mayfair Gardens
    Joyce Teo
    Property Correspondent
    The Straits Times
    Monday, 21 December 2009, 9.17 pm


    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.

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    Hi anybody knows the land size and plot ratio please?

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    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?

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    Quote Originally Posted by stalingrad
    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:

    "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.

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    Quote Originally Posted by jlrx
    The economics of en bloc sale is based on the logic that:

    "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.

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    Quote Originally Posted by stalingrad
    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.
    Yes. Not worth the trouble for those staying there.

    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).

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    Quote Originally Posted by jlrx
    Yes. Not worth the trouble for those staying there.

    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?

  10. #10
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    Quote Originally Posted by stalingrad
    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?
    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?

    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.

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