Island View relaunches en bloc sale with plans to cut price from $575m to $532m
The freehold condominium, Island View in Pasir Panjang, is set to be relaunched for collective sale on March 5, with plans to reduce the reserve price by 7.5% to $532 million. The decision to lower the reserve price comes after a failed attempt in October last year, which saw no bids.
The owners are currently seeking an 80% mandate to approve the reduction in the reserve price, and more than 60% of them are already in favor of the adjustment. The original reserve price was set at $575 million, translating to a land rate of $1,634 per square foot per plot ratio (psf ppr). With the proposed reserve price of $532 million, the unit land rate will be reduced to $1,542 psf ppr, including a 7% bonus for balconies and an estimated land betterment charge (LBC) of $183 million.
PropNex collective sales head, Laurence Wong, mentioned that the decision to lower the reserve price is a strategic move considering the cautious market sentiment. Factors such as a 15-year low in developers’ sales in 2023, high financing costs, and tentative private home-buying interest have contributed to the decision. Lowering the reserve price is aimed at making the development more attractive to potential buyers amid the prevailing market conditions.
Wong also emphasized that freehold properties like Island View are likely to remain appealing to homebuyers due to their ability to retain value over time. Despite market challenges, freehold properties continue to attract interest, with examples such as the recently launched Terra Hill condo selling units at an average price of around $2,780 psf in February.
Built in 1984, Island View occupies a large 309,543 sq ft plot along Jalan Mat Jambol in District 5. According to the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned for residential use with a gross plot ratio of 1.4. This allows for potential redevelopment of the condominium up to five storeys high with 402 new units, based on an average unit size of 100 square meters. The tender for Island View condo is set to close at 2 pm on April 16.
