En bloc wealth multiplier

=======>>>>>>> 0097434a87f6329e5cebbffbcc39f5150d6102ec
Mayfair Gardens was sold to Oxley Holdings for $311 million, or $1,244 psf per plot ratio, on Nov 17 (Credit: The Edge Singapore)
The latest collective sale of Mayfair Gardens brings the total tally for the year to $6.7 billion. Part of that money will return to the Singapore property market, while some of it could eventually make its way abroad.
Retiree Harry Lee has been a collective sale beneficiary not once but twice. The first was 20 years ago when the former Pidemco Land (now part of Capita Land) purchased the former Shelford Garden for $37 million in January 1997, at the peak of the first en bloc boom from 1994 to 1997. The freehold site was subsequently amalgamated with several other bungalow sites nearby, and redeveloped into the 215-unit The Shelford, which was launched in 2002 at an average price of $783 psf and completed in 2005.
Following the collective sale of Shelford Garden, Lee purchased a unit at Mayfair Gardens on Rifle Range Road, just off Dunearn Road. The main reason for this purchase 17 years ago was the convenience of the location: It was near the top schools in the Bukit Timah area. His two daughters were attending Nanyang Girls’ High School then, while his son was at Chinese High (now Hwa Chong Institution). All three subsequently went to Hwa Chong Junior College.
The purchase price for his Mayfair Gardens unit was about $800,000. While Lee thought it was high then relative to the $400,000 the original owner paid for the unit, he has little grounds for complaint today. Mayfair Gardens was sold en bloc to listed property group Oxley Holdings for $311 million, or $1,244 psf per plot ratio, on Nov 17.
Based on the sale price, Lee will walk away with around $2.5 million in cash upon the successful conclusion of the collective sale, which is more than triple his purchase price. Even compared with the resale price of a similar unit at close to $1.3 million last October, the collective sale premium is 94%.
More en bloc millionaires
The latest collective sale of Mayfair Gardens brings the total number of collective sale deals transacted by Knight Frank this year to five, with a sales value...