Diamond Tower in Balestier sold in collective sale
"EL Development has inked a deal to buy the freehold Diamond Tower at Jalan Rajah in the Balestier area for $49.6 million through a collective sale."
"The price works out to a unit land price of about $652 per square foot of potential gross floor area inclusive of an estimated $300,000 development charge payable to the state.
Diamond Tower has a land area of about 27,323 sq ft and is zoned for residential use with a 2.8 plot ratio (ratio of maximum potential gross floor area to land area).
‘We intend to build an 18-20 storey apartment block with about 100 units, mostly one and two bedroom units but we’ll also have some three bedders,’ EL Development managing director Lim Yew Soon said when contacted by BT.
The break-even cost for a new apartment development based on today’s construction costs works out to about $1,200 psf."
"Diamond Tower’s collective sale was marketed by Urban Front Real Estate. It was offered through a tender exercise which closed last month without a deal being sealed.
‘We submitted our offer after that and are buying under a private treaty deal,’ Mr Lim said.
The proposed collective sale of Diamond Tower will be subject to approval from Strata Titles Board as its owners have not unanimously consented to the sale."
Business Times-12 April 2010
No unanimous consent. I can't confirm how many units there are and the article didn't say how much each unit got.
But the developer is going to make a killing on the new development with a plot ratio of 2.8.
DOUBLE the height
DOUBLE the salable area
QUADRUPLE the unit number.
DOUBLE the price.
"The price works out to a unit land price of about $652 per square foot of potential gross floor area inclusive of an estimated $300,000 development charge payable to the state.
Diamond Tower has a land area of about 27,323 sq ft and is zoned for residential use with a 2.8 plot ratio (ratio of maximum potential gross floor area to land area).
‘We intend to build an 18-20 storey apartment block with about 100 units, mostly one and two bedroom units but we’ll also have some three bedders,’ EL Development managing director Lim Yew Soon said when contacted by BT.
The break-even cost for a new apartment development based on today’s construction costs works out to about $1,200 psf."
"Diamond Tower’s collective sale was marketed by Urban Front Real Estate. It was offered through a tender exercise which closed last month without a deal being sealed.
‘We submitted our offer after that and are buying under a private treaty deal,’ Mr Lim said.
The proposed collective sale of Diamond Tower will be subject to approval from Strata Titles Board as its owners have not unanimously consented to the sale."
Business Times-12 April 2010
No unanimous consent. I can't confirm how many units there are and the article didn't say how much each unit got.
But the developer is going to make a killing on the new development with a plot ratio of 2.8.
DOUBLE the height
DOUBLE the salable area
QUADRUPLE the unit number.
DOUBLE the price.
i wonder how much each owner could fetch if they sold their units separately themselves.
ReplyDeletebased on URA site, one transaction was done at 980K. Almost double the value. Not bad at all. If the break even is 1.2k psf, the selling price have to be around $1.4K to 1.5K to make a decent profit. Wow, can Balestier fetch this type of pricing? Apts there are currently going at 1K to 1.1K psf.
ReplyDeleteThat transaction was in Sep 2009.
ReplyDeleteYou should not look at individual unit prices - enbloc is about selling land and you look to the residual land value.
land value? it is what does into the pocket of each owner that counts.
ReplyDelete"the developer is going to make a killing on the new development with a plot ratio of 2.8"
Interesting assumption.
How much do you think the developer will sell psf for a new development in current market?
Some of the views seen here, sort of shows 'concern' how much the developer would make. Why do you need to?
ReplyDeleteThey will make their profits no matter. They will hold the launch, raise the price or whatever. It is their concern, not yours.
Sellers should be concern that when the $ finally comes to them, they have enough to buy a new home; b'cos it takes 1.5 to 2 years to close a large deal.
You can't ask "how much the developer will sell psf per for a new development in current market?" - It has to be what's their projection to sell 3-4 years from en-bloc. They can't sell an en-bloc immediately! They need time to close the deal, and knock down, then build and then launch. That's the projection time line that they will see; not the 'now'. They like to tell you the 'now' so that you'll sell it to them low for their greater profit.
some people here think only of developers benefitting from enbloc deals... not really true.
ReplyDeleteOwners do enjoy premium over how much they can get selling on their own.
Selling Price is a balance of owners expectation vs what developers will pay.
I hold my judgment of Diamond Tower in reserve - as there isn't enough information to form a sound opinion. It might be a reasonable price after all.
ReplyDeleteBut without unanimous consent, people have had their homes taken away from them. I can never condone the bully-majoritism in en bloc.
no unanimous consent = bully-majoritism?
ReplyDelete