A collective sales has been successfully effected for Shunfu Ville, at a tidy $638m! The deal was sealed after majority of the residents agreed to reduce the price from $688m.This amount is translated into an average $1.782m for each of the 358 privatized HUDC households, which is roughly about 50% higher than the average price of a typical unit if it was sold individually.
Effectively this transaction is the third highest collective sale in Singapore. It is also the first in almost a year after Thong Sia Building in the Orchard area.
The successful bidder, Qingjian Realty is proud to register this transaction as her maiden en bloc purchase foray in Singapore. Qingjian has been in Singapore for the last 8 years.
According to the collective sales committee chairman, the residents are satisfied and happy with the final price tag. Recognizing that the estate is 30 years old but at an excellent location, the eventual agreed price is worth every cent considering its current under-utilized plot ratio.
The last successful en bloc sales of such magnitude was registered in 2007 when Farrer Court, also a privatized HUDC estate was cut at a whopping $1,34b.
Qingjian Realty expects the land size of about 409,000 square feet to house more than 1000 units of condominium. It may even be considering throwing in some terraced units on this piece of 2.8 plot ratio land.
Besides the $638m, Qingjian is expecting to fork out another $123m and $94m respectively, for augmenting land usage and for increasing the lease period from the current 70 years to 99 years. In total, Qingjian is paying $747 psf per plot ratio. It is lower than the original $791 psf per plot ratio.
As a benchmark, the price is comparable to the Government Land Sales (GLS) for GEM Residences in Toa Payoh area which was sealed at $755 psf per plot ratio. Collective Sales in general take a protracted period to conclude compared to GLS transactions.
Qingjian is confident of this yet-to-be-named development. She has previous experience in her first project, Natura Loft, which is also in the Thomson-Bishan area. In fact, Qianjian wrote a letter of interest after the first tender release in Oct 2015 which saw no participants. A second tender was launched in January 2016 which Qingjian clinched.
More projects for your selection in the Thomson-Bishan area for your pick:
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