SINGAPORE: Owners of Normanton Park condominium have launched a tender for the collective sale of the privatised housing estate with a minimum asking price of S$800 million on Monday (Aug 21).
At this price, each unit owner of the 488-unit development at Kent Ridge stands to receive between S$1.6 million and S$1.8 million.
However, developers will have to take into account additional costs when bidding for the site. These include the estimated differential premium for intensification of the site of about S$225.3 million, and another S$220.6 million for topping-up the lease to a fresh 99-years.
All in, the developer may have to fork out around S$1.25 billion for the former government housing project built for military personnel and their families.
This is the 40-year-old estate’s second go at an en bloc sale after their failed first attempt in October 2015, which had a reserve price of around S$840 million.
Normanton Park’s marketing agent Knight Frank said that the condominium has the potential to house more than 1,200 new residential units of about 1,076 square feet each.
Mr SS Chopra, the chairman of the sale committee, said that they want to ride on the current bullish sentiment in the en bloc market, which has seen seven collective sales so far this year.
“It took us a mere 11 days to reach the 80 per cent consensus and a further two weeks to launch the tender today,” he said.
Mr Nicholas Mak, ZACD Group's head of research and consultancy, said the developer who will buy Normanton Park could launch the new homes at more than S$1,400 per square foot.
“By the time the new development on the site of Normanton Park would be ready for launch to homebuyers, it could be some time in 2019, or even 2020,” Mr Mak said. “The market then could be quite different from what it is today. It could be in the middle of market recovery at that time, so prices could also be higher."
Market players said at least four other privatised government housing projects may go on the market soon.
Laguna Park and Lagoon View in Marine Parade have already appointed marketing agents, while real estate firm Jones Lang LaSalle will launch the tender for Florence Regency on Aug 23.
Channel NewsAsia understands that Chancery Court will also be holding a meeting this weekend to form a sales committee.