The collective sale fever is back, and deals have been flowing thick and fast in the past two months. So far in 2017, there have been eight successful collective sales – including that of Citimac Industrial Building – at a total value of approximately $3.5 billion. This exceeds all three deals done in 2016 by far.
In a previous article, we used our logit model to identify condos with the highest probability of being put up for collective sale. Based on the model, we found that the following variables can affect a condo’s probability of being put up for collective sale:
• Age (older developments have a higher probability);
• Number of units in the development (smaller developments have a higher probability); and
• Plot ratio enhancement.
Meanwhile, tenure (freehold versus leasehold) and location (whether the property is located in the Central Region or Non-Central Region) were found to be statistically insignificant at 5% level.
Using the absolute value of sales transactions between 2014 and 2017 as a guide, we take a look at the most affordable non-landed residential developments with en bloc potential within the core central region (CCR).
D10 – Tanglin
Completed in 1985
Average price: $1,697 psf
Sommerville Park is tucked away from the main road of Farrer Road and is surrounded by mature foliage. The freehold condo is located just 585m away from Farrer Road MRT station.
A 4,201 sq ft unit at Sommerville Park is currently up for sale on EdgeProp.sg for $5.75 million, or $1,369 psf. Meanwhile, a 1,926 sq ft unit is listed at $3.2 million ($1,661.50 psf). The latest transaction in the development was on July 2017, when a 1,302 sq ft unit fetched $1.83 million or $1,405 psf. So far, there have been nine sales transactions in 2017, ranging from $950,000 to $4.8 million for units between 624 sq ft and 4,101 sq ft.
D11 – Bukit Timah
Completed in 1980
Average price: $949 psf
Hillcrest Arcadia sits atop Arcadia Road, a heritage road where trees are preserved and no development is allowed within a 10m-wide buffer. It is among the list of ageing leasehold properties located in the CCR.
The development features different unit types, including two, three and four-bedder units, as well as maisonettes spanning nearly 2,800 sq ft. In 2011, residents of Hillcrest Arcadia sought a top-up to conserve the estate, but the application was rejected.
A 925 sq ft unit at the condo is currently up for sale for $880,000 or at $972.97 psf, while five 1,712 sq ft units are selling for $1.52 million or at $887.90 psf. The latest transaction took place in August 2017, whereby a 1,711 sq ft unit changed hands for $1.35 million ($789 psf).
D10 – Tanglin
Completed in 1997
Average price: $1,510 psf
Kellock Lodge’s collective sale attempt in 2011 was unsuccessful. The freehold development, located at River Valley Road, is within walking distance from eateries and amenities such as Great World City and Zion Riverside Food Centre.
There are limited listings and sale transactions at Kellock Lodge, which has only 48 units. The most recent transaction took place in August 2017, when a 893 sq ft unit sold for $1.19 million or 1,332 psf. Prior to that, a similar-sized unit sold for $1.21 million ($1,354 psf) in May 2016.
A 1,217 sq ft unit at Kellock Lodge is currently listed for sale on EdgeProp.sg at an asking price of $1.84 million or $1.510.30 psf.
D11 – Novena
Completed in 1981
Average price: $1,156 psf
Chancery Court is located just 408m away from Newton MRT station. It was reported that residents of the leasehold apartment are currently in the midst of forming a collective sales committee.
A 2,035 sq ft unit is listed for sale on EdgeProp.sg for $2.5 million ($1,228.50 psf), while a 2,271 sq ft is listed for $2.35 million ($1,034.8 psf).
There have been four sales transactions in 2017 so far, with the most recent one in August 2017, whereby a 2,034 sq ft unit sold for over $1.9 million ($953 psf). Between March and July 2017, three 926 sq ft units changed hands for between $1.05 million ($1,134 psf) and $1.25 million ($1,350 psf).
D9 – Newton
Completion date unknown
Average price: $1,084 psf
Cavenagh Gardens is located adjacent to the Istana and is 581m away from Somerset MRT station. The freehold apartment has been put up for collective sale for at least five times, with the last unsuccessful attempt taking place in 2012.
There have been four sales transactions at Cavenagh Garden in 2017, with 1,550 sq ft units being sold for between $1.65 million ($1,065 psf) and $1.75 million ($1,129 psf). The latest sale transaction in June 2017 saw a 1,550 sq ft unit change hands for $1.68 million ($1,084 psf). A similar-sized unit is currently listed for sale on EdgeProp.sg for $1.68 million or $1,083.87 psf.