Mar 07, 2013 - By: iProperty.com Singapore
A day after Ultra Mansion was sold en bloc for $149 million, it was announced that Kovan Lodge has been put up for collective sale again since last August.
Being the first residential site put up for a possible en bloc deal following the latest round of property cooling measures, Kovan Lodge is a four-storey development comprising 16 apartments of units that measure 1,200 sq ft to 1,800 sq ft. Standing on a freehold site near the Kovan MRT station, it is asking for just below $30 million, a figure down from the $32 million demanded by owners last August. The current tender closes on 26th March 2013.
Under the 2008 Master Plan, the 27,090 sq ft site is zoned for residential use. The plot ratio, which is the ratio of maximum gross floor area to land area, is 1.4. As the asking price is around $30 million, the selling price works out to be $790 psf of potential gross floor area.
Analysts said that the move to re-launch Kovan Lodge for a collective sale suggests that en bloc sales may be reviving. More sales are estimated to follow given that many home owners believe that property prices have reached its peak and is now the time to cash in.
Based on the current asking price, its owners would stand to receive sums of between $1.5 million and $1.8 million per unit. According to sources, owners who currently possess more than 80% of the share values and floor area in the development have signed the collective-sale agreement. Any sale would be subject to approval from the Strata Titles Board (STB) unless the remaining owners come on board before the STB hearing.
Market watchers speculated that there would be more collective sales to come. According to experts, they observed that whenever property prices reach its peak, everyone is interested in doing collective sales. Owners of small developments, particularly, may want to sell en bloc in hopes of cashing in now and then reinvest the proceeds when prices decline later.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)