Thursday, April 5, 2012

Cheaper sites form bulk of collective sales

Straits Times: Thu, Apr 05
ESTATES at the lower end of the price spectrum accounted for most collective sales over the past 10 years, according to a new report.

There were 184 sites sold at less than $50 million, out of the 336 deals completed between 2002 and last year, comprising 55 per cent of the action.

The reason is hardly a surprise: Cheaper sites mean more developers can make a bid, including small firms.

There were 72 sales of sites priced from $50 million to $100 million, making up 21 per cent of the transactions, but pricier sites were harder to sell.

There were only 45 deals in the $100 million to $200 million range, 22 for $200 million to $300 million, and 13 for sales above $300 million.

It is clear from the Credo Real Estate report that collective sales for sites priced above $300 million are more challenging to pull off outside of boom years like 2007.

The 10 deals that sold at above $300 million that year totalled $5.9 billion, making up 52 per cent of all sales for the year.

The largest collective sale on record, the $1.34 billion sale of Farrer Court, also occurred in 2007...

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Team Marshe
Martin Koh/ Sherry Tang
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