Up until this point, the collective sales market has appeared to be rather weak. However, a pair of developers have now expressed interest in the Shunfu Ville venture.
The 358 unit development, located in Upper Thomson, was put on the market last year at a minimum price of $688 million.
The tender venture came to an end last week, but no official offers had been made. However, discussions are now in full flow, behind the scenes, for the interested developers for Sturdee Road Condo Farrer Road.
Sturdee Road Condo Boon Keng Collective
According to property specialists, Sturdee Road Condo prospective investors in collective sale sites are particularly worried about the Additional Buyer Stamp Duty (ABSD). This is a fee which property developers have to meet if they fail to finish a residential venture and offload all of its units within a five year period.
The ABSD currently stands at 15% of the total purchase cost of the property. The five year time frame begins as soon as the Strata Titles Board or the High Court gives permission for the sale to progress for Sustained Land Condo.
Thus, developers are regularly disrupted by government regulations and strict selling periods. This is especially true considering the fact that it takes around twelve weeks for a sale to be entirely closed, 4-6 months for all of the former residents to relocate, and a further 2-3 months to remove the old building so work on the new one can start in Sturdee Road SL Capital Condo.
Sale of Sustain Land Units
The sprawling 408,927 sq ft Shunfu Ville site contains a huge amount of units – around 1,500, presuming that the typical unit size is 753 sq ft. This massive size is definitely going to put a strain on developers and make it more likely that they need to pay an ABSD fee.
It is important to note that the Shunfu Ville site is still not the largest on the market right now. In fact, that title must be awarded to the staggering 661,000 sq ft Normanton Park project.
It is difficult to predict whether all of the units can be offloaded, in light of the current climate. On the other hand, as a number of the Government Land Sale ventures are situated in attractive areas, developers are likely to take a keen interest in Sturdee Road Condo Boon Keng.
Bendemeer Road Condo SL Capital
A market expert said: “For an en bloc sale to happen, the location needs a lot of dazzle and appeal. It needs to be very close to the MRT and to some great schools.”
The Strata Titles Board confirmed the collective sale of the Thong Sia Building (located at Orchard Road) this week. It is the sole high profile collective sale deal of the year.