Tampines Court sold en bloc for $970m
Sprawling Tampines Court was snapped by the developer Sim Lian for a grand value of $970 million as the collective sale market continues to get sizzled.
It is one among the largest deals for a former Urban and Housing Development Company property for the past 10 years since Farrer Court sold for $1.34 billion in the year 2007.
It is believed by the Property industry watchers that this 702,164 sq ft site can be converted into a building project with about 2,000 to 2,100 new units and to a maximum of 2,600 units, should the site be stretched to its limit.
This could be considered as both success and failure for Sim Lian, the watchers revealed.
CBRE director of capital markets, Mr Galven Tan, said to The Straits Times that “It was specified in the media that there was just a single bidder for this tender. It was the development size that really the chance of doubtful participation.”
Sim Lian will have a period of only 5 years to develop and sell all these units, if they are to avoid paying extra buyer’s stamp duty on the land price, warned the analysts.
Executive director of ZACD Group, Mr Nicholas Mak conveyed that currently, there are no new condo projects been scheduled to be launched in this vicinity of Tampines Court. Hence, there could be few competitors for this new condo project on this particular site.
He also estimated that the break-even price for this project could be in-between $1,050 psf and $1,150 psf.
CBRE’s Mr Tan also conveyed that the land’s cost to developers would be passed to the buyers in terms of a small degree of the higher home prices.