This time the owners have lowered their expectations to $125-128 million, down almost 30 per cent from $175 million in 1999. BT understands owners at the 88-unit development had tried to do an en-bloc sale in 1997 but fell short of the required number of consenting owners.

At $125 million to $128 million, this works out to a land cost of $517-529 per square foot (psf) of potential gross floor area, including an estimated development charge of $11 million. While lower than the asking price in 1999, the owners can still pocket generous premiums of 40-50 per cent over what they can expect if they sold individually.

The site with a land area of 125,133 sq ft can be built up to 2.1 times. Developers can build a 24-storey condominium with some 250 units. Break even is estimated at $790 psf.

Comparable to Dragon View Park are the former Times House site sold to Marco Polo and Quelin Gardens at St Thomas Walk. Marco Polo paid $118.88 million for the Times House site or $450 psf per plot ratio (ppr) inclusive of an estimated development charge of $23 million. Chip Eng Seng forked out $79 million or $490 psf ppr for Quelin Gardens.

The en bloc sale of Holland View has cleared its final hurdle, after two owners who argued against it settled their case before it was brought to the Strata Titles Board (STB) for mediation, sources say.

(Dragon View Park) development site is one of the last few remaining sizeable plots available for sale in Singapore's prime District 10,' said Colliers International director of investment sales Ho Eng Joo. 'Located on high ground off a quiet cul de sac of River Valley Road with unobstructed city views and with residential prices in the third quarter showing signs of recovery, this site will be a popular choice for developers looking to beef up their prime land bank.'

The existing development comprising two blocks was completed in 1968. Back then, units in the lower four-storey block were sold at $38,000 each, while those in the adjacent 14-storey tower went for $45,000 each.

The tender will close on Nov 2.   - by Andrea Tan     SINGAPORE BUSINESS TIMES   7 Oct 2004

46 Holland View: On average, owners stand to get 50% more from the collective sale. But after taking into account such costs as mortgage interest charges, renovation, stamp fees, the two owners claim they would suffer a loss.

The owners are understood to have objected to the sale because, among other things, they would suffer losses after taking into account costs such as mortgage interest charges, renovation costs, property taxes and stamp fees. The treatment of these cost elements is ambiguous under the Strata Titles Act.

The Holland View sale was to have been a landmark hearing before the STB as it has never been stipulated what deductions are allowed in the calculation of an owner's profit or loss. Any firm ruling could impact future en bloc sales, raising questions such as whether lavish renovations are justified as a factor contributing to an owner's loss.

For the en bloc sale of an estate of more than 10 years old to succeed, 80 per cent of the owners must agree to a sale. Holland View is 19 years old, and close to 95 per cent of owners have agreed.

But in any en bloc sale, an owner who stands to make a loss can apply to the STB to have the deal vetoed. It was reported that the owners of Holland View will, on average, get 50 per cent more from the collective sale than if their properties were sold separately on the open market.

It was announced in April that listed construction and property group Sim Lian had clinched the estate for $61.68 million. This means the owners could reap $770,000 to $1.4 million, depending on the size of their units.

Meanwhile, Jones Lang Lasalle, who brokered the Holland View deal, said yesterday that two new sites in the River Valley area, including the 16-unit Nathan Court, are up for tender. They can be bought separately, or as one site measuring over 23,300 square feet. The tender closes on Nov 9.

Analysts believe the single plot could fetch around $450 psf of potential gross floor area. Break-even cost for developers would be around $700 psf.

New homes in the area are selling at an average of over $800 psf, consultants say. This means that Nathan Court owners may reap premiums of more than 50 per cent over what they would be able to get selling individually.

Said JLL associate director: 'If a buyer successfully acquires both parcels, the combined site would be able to yield an estimated gross floor area of approximately 65,300 sq ft, subject to payment of development charge.' - by Vince Chong   SINGAPORE BUSINESS TIMES    5 Oct 2004

En bloc market braces for Holland View outcome

Signed but not sealed. The collective sale of Holland View is set for a landmark hearing by the Strata Titles Board (STB) in about two weeks, which could lead to implications for the entire en bloc market.

Sources told BT yesterday the deal will go before STB after two of the 46 owners objected to the sale on the grounds they will suffer a loss.

It will be the first such hearing on this issue. Similar cases have come up before but have been settled privately, without dragging STB into the matter. And things could turn out this way with Holland View, given the hearing is still some time away.

The two owners are allegedly objecting to the sale because, among other things, they would suffer losses after taking into account costs such as mortgage interest charges, renovation costs, property taxes and stamp fees. All of these factors are ambiguous under the Strata Titles Act.

For the en bloc sale of an estate more than 10 years old to succeed, 80 per cent of all owners must agree. Holland View is 19 years old, and close to 95 per cent of owners have agreed.

But in any en bloc case, an owner who stands to make a loss can apply to STB to have the deal vetoed.

Observers say the Act defines an owner's loss as 'the proceeds of the sale of his lot, after any deduction allowed by the Board, (being) less than the price he paid for his lot'.

However, what is deemed an allowed deduction has not been clearly set out. And any firm demarcation on this by STB in the Holland View case could complicate future en bloc sales.

For example, as one owner involved in another en bloc sale asked: Can renovation costs be justified as a factor contributing to a loss if someone has upgraded their home with lavish but unnecessary fittings and built-in furniture.

The Collective Sale Agreement signed by 46 Holland View owners defines any profit or loss as the 'difference between the original purchase price and the gross sales proceeds of the unit'. Based on this definition, sources say both owners are in the money. On average, owners will get 50 per cent more from the collective sale than their properties could fetch on the open market.

It was announced in April that listed construction and property group Sim Lian had clinched Holland View for $61.68 million in an en bloc deal brokered by Jones Lang Lasalle. This means owners could reap $770,000-$1.4 million on their homes, depending on size.

Consultants expect eight to 10 en bloc sales this year, after eight such deals totalling $577 million were concluded in 2003.  - by Vince Chong   SINGAPORE BUSINESS TIMES    21 Sept  2004

A crippling blow for property owners 
Policy of upping plot ratios only on empty land changes rules of game

Last  Friday Dr Vivian Balakrishnan, a medical doctor and hospital administrator turned politician, made an announcement that drove a stake through the heart of the property market. And he did it with a smile.

Speaking at the launch of the draft west region Master Plan, part of a blueprint for Singapore's future physical development, he said the government will raise plot ratios for residential land near 'public transport nodes'.

But this will be done selectively and only land currently empty will benefit from the higher plot ratios, which allow for more intensive development. This is to 'enable areas that have already been built-up to be left intact, so that the estate's established character can be retained', he said.

Dr Balakrishnan, the No 2 man at the National Development Ministry, is an accomplished debater. Perhaps his audience was lulled by his voice. Perhaps they were more concerned with the government's Budget announcement on the same day. Whatever the reason, few realised that he had quietly changed the most fundamental rule of the property market.

Property is 'location, location, location'. More than anything else, location decides the value of a property. With the right location, a shop will get more customers, a hotel more guests, a condominium a better class of tenants and a factory more willing workers. Get it wrong, and nothing else - be it design, facilities, or other factors - will be enough to compensate for the disadvantage.

This may no longer be true in Singapore. In his soft, even voice, Dr Balakrishnan in effect disclosed that location will no longer be the main criterion for value, because properties in the same area may not be treated in exactly the same manner anymore.

Take the policy on plot ratio. It used to be that a higher plot ratio benefits all properties within a prescribed area. Now the windfall only goes to empty land, and a block of condos may stand between two vacant lots and still be denied the higher plot ratio given to its neighbours.

Private property owners are certain to be upset. They will also point out that it is the government that will benefit most from the change as almost all vacant land in Singapore is owned by the state.

Markets thrive on certainty and transparency and the new policy Dr Balakrishnan unveiled has robbed the property market of both.

The market is no longer certain, as the rule change will result in different parties benefiting differently.

And it is not transparent because no one knows how the new rule on empty land has come about.

Previous bad call
One guess in the property market is that the Urban Redevelopment Authority, author of the Master Plan, may have misjudged badly when it last raised plot ratios in the mid-1990s.

Those inclined to this view cite various examples as evidence. Higher plots ratios were given in URA's design guide plans, but were disallowed when owners tried to put them into practice.

There is also a strange policy that allowed high-rise redevelopments in the central, crowded areas, thus causing more congestion, but not in outlying areas where high-rise developments would do less harm.

And, of course, by limiting the higher plot ratios this time round to owners of empty land, it is hard to avoid the conclusion that the beneficiary will be mostly the government.

So what next for a property market that is no longer as certain and transparent? The answer is simple. Like all markets that have lost their direction, it is likely to soon see the departure of investors.

In Singapore, most property owners are stuck with their properties and cannot leave. But the fortunate ones who can may soon pull up stakes and put their money in greener pastures.

After all, what's the point of investing in a market where you might wake up one morning and find yourself disadvantaged by a new set of rules?  - By Lee Han Shih    SINGAPORE BUSINESS TIMES  04 Mar 2003

King's and Queen's Flats 
Kim Tian Road off Tiong Bahru Road

JLL has finally closed the en bloc deal on King's and Queen's Flats after seven long years and three launch attempts.

The property firm yesterday confirmed earlier BT reports that the two estates - totalling 112 units of mostly smallish apartments - were sold at a hefty $82 million. At an average of $500,000-$900,000 a home, based on simple calculations, this represents a whopping estimated premium of at least 60 per cent over market prices, said JLL.

This is similar to the heady days of the collective sales market, when premiums were at least 40 per cent.

Premiums of 50-70 per cent were common with some owners enjoying rates of 100 per cent or more.

Located in an older part of the city on Kim Tian Road off Tiong Bahru Road, the majority of the flat owners are understood to be in their 70s and 80s.

JLL country head said: 'The sale price comprises $21 million for King's Flats (32 units) and $61 million for Queen's Flats (80 units). Should the developer choose to develop the site into a 20-storey condo with full facilities, more than 170 units averaging 1,200 sq ft per unit can be built on site.'

Market watchers said that attempts at selling the estates, where units range from 753-1,284 sq ft, began in 1996.

A consultant said: 'An en bloc deal takes an average of three to four years from start to completion, so this deal has indeed been literally a big deal to some who have been involved from the beginning.'

JLL also confirmed BT's earlier report that the buyer of King's and Queen's Flats is a joint venture comprising United Overseas Land - which developed Tiong Bahru Plaza nearby - and its long-time partner, listed construction group Low Keng Huat.

The flats, close to Tiong Bahru MRT station, have a combined freehold site area of about 82,400 sq ft. At $82 million, land cost comes to over $340 per sq ft of potential gross floor area.

A minimal development charge is payable as the sites have a high development baseline, BT understands. A new condo on the site could break even for below $700 psf, say analysts.

The last attempt to sell the flats was in October 2000, JLL said, which was subsequently withdrawn following the market downturn.

JLL had also concluded last year's biggest en bloc sale, Lengkong Gardens, worth $49.5 million. -  by Vince Chong     Singapore Business Times    15 Feb 2003

The biggest en bloc site ever offered here - Parkview Condominium at West Coast Park - will be launched tomorrow. And the price?  An estimated $200 million for 407,387 sq ft of land.

The 956-year leasehold site - with effect from May 27, 1928 - is the largest collective-sale plot marketed in Singapore. But it's not the most expensive.

Cairnhill Court and a neighbouring bungalow, sold to Li Ka-Shing's Property Enterprises Development for $370 million in early 2000, holds the en bloc price record.

The 76 owners of Cairnhill Court pocketed some $3 million to $7.7 million from the sale, according to earlier media reports.

Parkview's 178 owners will get an average of $1.12 million if the sale goes through.

Knight Frank, which closed the mega Cairnhill deal, is the marketing agent for Parkview, which is for sale via a tender that closes on Jan 8, 2003.

At $200 million, the land cost would work out to about $340 per sq ft of potential gross floor area, including a development charge of some $22.5 million.

The site can yield some 480 condo units of a size averaging 1,200 sq ft. Breakeven cost is estimated at around $600 psf.

City Developments paid $122 million or $333 psf per plot ratio for Tat Lee Court in March 2000. CityDev is building the 280-unit Monterey Park condo there.

Far East Organization's 99-year leasehold condo Blue Horizon at West Coast Crescent is selling for about $550-600 psf.

Parkview is the sixth en bloc site to be offered this year.

Under the 1998 Master Plan, the site can be built up to 1.6 times its land area and with a building height of up to 12 storeys.

This is the second collective-sale attempt for Parkview.

In 2000, some owners tried to put the condo on the en bloc market but failed because they could not garner enough signatures to cross the minimum 80 per cent threshold.

This time around, owners owning more than 80 per cent in share values have consented to the sale.

'Although there are freehold and 999-year leasehold sites in suburban areas for sale, none of them are quite as large as the subject site whose size allows for many development possibilities,' said Knight Frank's director Amy Khor.

'This site should appeal to developers looking to capitalise on the opportunity to acquire a site in a pleasant residential enclave.'      - By Andrea Tan        Business Times    27 Nov 2002

• Bishopsgate site