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SINGAPORE: Pine Grove Condominium is up once again for collective sale via public tender, this time with a reserve price of S$1.95 billion (US$1.43 billion).
This is the fourth en bloc attempt for the Ulu Pandan development since 2008, and the third time that the condominium development has achieved the requisite consensus, ERA Realty Network said in a press release on Wednesday (Sep 13).
Buildings 10 years old and above require at least 80 per cent consent from owners for a collective sale to happen.
The reserve prices in its two most recent en bloc attempts were set at S$1.86 billion in 2019 and S$1.7 billion in 2011, according to ERA. Another attempt in 2008 did not get the consensus required.
ERA said that Pine Grove is the largest residential site, both in terms of land size and price quantum, to be launched for sale this year.
The former HUDC estate comprises 660 residential units sitting on a site of 82,982.8 sq m. It was completed in 1984 and was one of the first two estates to be privatised in 1996.
Out of the 18 former HUDC estates built between 1974 and 1987, Pine Grove ranks second in terms of land size after Braddell View.
The site is designated for residential development with a gross plot ratio of 2:1, which can potentially accommodate up to 2,050 new units, subject to approval from the authorities, ERA said.
If the development is successfully sold at the minimum price, Pine Grove’s owners will receive gross sale proceeds of S$2.39 million to S$3.20 million.
The reserve price of S$1.95 billion for the site translates to a land rate of S$1,434 per sq ft per plot ratio. This is after factoring in the additional 10 per cent bonus gross floor area under the various incentive schemes and inclusive of an estimated land betterment charge of over S$1 billion for intensification and lease upgrade for a fresh 99-year lease.
ERA said owners are hopeful of a better outcome this time round due to the better-than-expected tender result for a government land sales (GLS) site at Pine Grove last year.
In June 2022, United Venture Development, a joint venture between UOL Group and Singapore Land Group, was awarded the tender for the 22,534.7 sq m site with a bid of S$671.5 million.
FACTORS TO CONSIDER IN SALE OF LARGE SITE
There are several factors developers have to consider when bidding for a large site such as Pine Grove, said PropertyGuru’s country manager for Singapore Tan Tee Khoon, citing economic headwinds, rising interest rates and higher building costs.
“There is also a GLS site Pine Grove Parcel B with an estimated 565 units that sits next to the Pinetree Hill development,” Dr Tan noted. The tender for Pine Grove Parcel B will close on Nov 7.
Given Pine Grove’s reserve price of S$1.95 billion, Dr Tan said a consortium of at least two to three developers may be necessary for a successful sale.
“There aren’t many who may have the appetite for the largest residential en bloc site by far this year,” he added.
The tender for Pine Grove will close at 3pm on Nov 29.
Managing director of investment sales at ERA Tay Liam Hiap said: “With the site overlooking the lush greenery of the Dover Forest to the south and the Clementi Forest to the north, and the Dover MRT station being within reasonable walking distance away, Pine Grove offers an attractive proposition for developers looking for sizeable sites with excellent attributes.”
He also highlighted its proximity to amenities, including shopping and dining establishments at The Clementi Mall, The Star Vista and Holland Village, as well as primary schools such as Henry Park, Pei Tong, Methodist Girls’ and Nan Hua.
“With limited upcoming residential supply in the Ulu Pandan area, the new development will surely appeal to many home buyers,” he added.
