Singapore Expats Forum

En bloc sale - price estimate, anyone?

Discuss about the latest news & interesting topics, real life experience or other out of topic discussions with locals & expatriates in Singapore.

User avatar
aster
Manager
Manager
Posts: 1593
Joined: Fri, 15 Jan 2010

En bloc sale - price estimate, anyone?

Postby 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?

User avatar
jpatokal
Moderator
Moderator
Posts: 3014
Joined: Tue, 09 Dec 2003
Location: Terra Australis Incognita

Postby 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...)
Vaguely heretical thoughts on travel technology at Gyrovague

User avatar
aster
Manager
Manager
Posts: 1593
Joined: Fri, 15 Jan 2010

Postby 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...

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 34789
Joined: Thu, 11 Nov 2004
Location: Still Fishing!
Contact:

Postby 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! :(

User avatar
aster
Manager
Manager
Posts: 1593
Joined: Fri, 15 Jan 2010

Postby 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.

User avatar
PhantomX
Moderator
Moderator
Posts: 187
Joined: Tue, 09 Sep 2003

Postby 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


  • Similar Topics
    Replies
    Views
    Last post

Return to “General Discussions”

Who is online

Users browsing this forum: No registered users and 3 guests