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En bloc sale - price estimate, anyone?

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aster
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En bloc sale - price estimate, anyone?

Post by aster » Wed, 27 Jan 2010 9:48 am

This is just a hypothetical question - nothing is going on at present, no en bloc sale, just a loose discussion with hopefully some numbers flying around. :)

Riverwalk Apartments (Boat Quay - next to Clarke Quay MRT) - the location is good, but the building is >20 years old and it shows. I think there was going to be an en bloc sale a while back but in the end it didn't work out.

I read an article about this recently but still have no idea how to make any sort of valuation, but should this ever be the focus of an en bloc sale, what kind of price estimate would we be looking at?

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jpatokal
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Post by jpatokal » Wed, 27 Jan 2010 10:56 am

Pull number from hat. Attach bicycle pump nozzle. Inflate number wildly and try to sell it before it bursts.

Slightly more seriously, the prices for en-bloc sales in Singapore are semi-random and subject to market whims. Usually a price-to-rent ratio of 1:100 to 1:200 is considered normal, but two years ago when the property bubble was at its highest and my condo was on the en-bloc chopping block, the asking price for my unit equated to a 1:640 ratio. :shock: (Unsurprisingly they didn't find a buyer for the unit or the condo though...)
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aster
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Post by aster » Wed, 27 Jan 2010 6:14 pm

Yeah, I'm also having trouble seeing how investing in a building that will probably go the en bloc route in the future can be profitable if the current price is already around the $1200 mark psf. The developer would have to pay off everyone, take everything down, and then put up a new building from scratch... and still sell at a price that won't scare people away.

Given permission they could put up two towers there, and eliminate that emply mall that serves hardly any purpose nowadays...

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sundaymorningstaple
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Post by sundaymorningstaple » Wed, 27 Jan 2010 7:49 pm

Who knows, they might plan on building an exclusive one like was built a couple of years ago and units sold for around 3K/sqft setting a new record at the time. Can't remember the name of it though! :(
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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aster
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Post by aster » Thu, 04 Feb 2010 8:23 am

The St. Regis perhaps? That was one of the pricier ones I've come across.

I agree that it's either going to be exclusive and/or big, the space is there though and they could build at least as high as the current building.

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Post by PhantomX » Thu, 04 Feb 2010 6:17 pm

price is always somewhat benchmarked to current market whatever that is at the point of intended sale plus outlook for next 6-9mths that these things take to organise and put into the market place.
X

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