Thomson View owners looking to lower reserve price by 12% to S$808 million
Thomson View condominium is back in the spotlight for an en bloc sale after its tender in September closed without any bids. In response, the owners are now considering reducing their reserve price by 12%, from S$918 million to S$808 million, as they shift towards private treaty negotiations.
So far, about 60% of the owners have agreed to this lower reserve price, according to the marketing agent Edmund Tie. The adjusted price would translate to a land rate of approximately S$1,176 per square foot per plot ratio (psf ppr), once you account for the land betterment charge and the lease upgrading premium for a fresh 99-year lease. If the developer uses an 8% bonus floor area, this rate drops slightly to S$1,141 psf ppr.
This new reserve price will only take effect once over 80% of the owners by strata area and share value have signed the supplemental agreement. Until then, the original land rate, based on S$918 million, stands at S$1,275 psf ppr.
Thomson View sits on a sizable 50,197 square metre plot, zoned for residential use with a plot ratio of 2.1. This means the site has the potential to yield about 1.2 million square feet of gross floor area, which could translate into 1,240 new residential units, based on an average apartment size of 85 square metres.
The current development, which dates back to 1975, consists of 200 apartments, 54 townhouses, and a shop unit. According to Edmund Tie’s head of investment advisory, Swee Shou Fern, no pre-application feasibility study is required for redevelopment, which could make the process smoother for interested developers.
Swee also noted that lowering the reserve price could help bring both developers and owners closer to a mutual agreement, especially given the lack of new private housing projects in the area.
Thomson View has had several unsuccessful en bloc attempts in recent years, with no takers for the S$918 million reserve price when it was marketed in February and July this year. The site was previously listed at S$950 million in 2021 and 2022, also without success. An earlier attempt in 2013 at S$590 million was voided due to issues involving the marketing agent.
Interested buyers now have until November 14 to make an offer before the 10-week private treaty period comes to a close.
Thomson View isn’t the only development facing challenges in the en bloc market. Earlier this year, Pine Grove condominium lowered its reserve price by 8.7% to S$1.78 billion in its fifth en bloc attempt, but still didn’t secure a deal. On the other hand, the last successful residential collective sale was at 132 Sophia Road, sold for S$33.59 million, just below its guide price of S$35 million.