Park View Mansions will relaunch its collective sale tender at a 22 per cent lower reserve price of $250 million on 12 December.
Sole marketing agent Huttons Asia in making the announcement said more than 80 per cent of the 160 owners have agreed to the lower reserve price. The 99-year leasehold, 160-unit Park View Mansion along Yuan Ching Road was initially put up for collective sale with an asking price of $320 million in March 2018.
The land rate with a reserve of $320 million works out to $1,183 psf per plot ratio (ppr), after factoring in $157 million of estimated differential premium and lease upgrading premium. With a 22 per cent reduction to the reserve price the new price translates to a land rate of approximately $969 psf per plot ratio after taking into account an estimated differential premium and lease upgrading premium of $140.8m.
Owners of Park View Mansions are expected to receive $1.44 million to $1.6 million each from the sale.
Huttons Asia said that Park View Mansions has an allowable gross plot ratio of 2.1 which could yield up to 440 dwelling units based on a 915 sqft average unit size.
Huttons Asia head of investment sales Terence Lian said: “The site presents an excellent redevelopment opportunity for developers as it is located right next to Jurong Lake Gardens. This is a rare piece of land which offers a seamless connection to the gardens and provides a natural environment, hence enhancing the well-being of residents.”
Angela Lim, deputy head of investment sales at Huttons Asia, in noting that the amount of housing stock in the Jurong East area has not changed since the 4th Quarter of 2016, said the last private development in the area was the 710-unit Lake Grande by MCL Land.
Saying this project was sold out in less than three years, she added: “Hence Park View Gardens is an opportune choice for developers to replenish their land bank to match the growing and pent up demand in the Jurong area”.
Located next to Jurong Lake Gardens, the 191,974 sq ft site is zoned for residential use with a gross plot ratio of 2.1 under the 2014 Master Plan. The redevelopment can therefore have a gross floor area of 403,145 sq ft. The site could yield 325 to 455 units, assuming each unit is sized between 860 sq ft and 1,200 sq ft.
The tender for Park View Mansions will close on 18 January 2019 at 12 p.m.
The lowering of the reserve price for Park View Mansions makes it the latest case of owners dialling down their expectations in lieu of a quieter en bloc market, but the site holds much promise as it is within the Jurong Lake District.
There is now some 160 hectares of land that is yet to be developed within the 360-hectare Jurong Lake district. More than 40 per cent of the mixed-use business area is set aside for residential purposes. Developments for the Jurong Lake District are centered around the Jurong East MRT station. With established businesses around the MRT station – like the International business park, IMM (a major shopping mall), along with other new shopping malls, a hospital, educational hubs, high rise offices and residential units – Jurong Lake District is looking very credible as a regional centre even without the HSR project.
Jurong Gateway is also most likely to be the crown jewel in the Jurong Lake District vicinity. With a catchment consumer base of Jurong East HDB dwellers and the Lakeside village (a designated dining place) the Jurong Lake District is likely to be developed fast and find success quickly.According to the URA’s Masterplan, most of the developments will be centred around Jurong Gateway for a start.
Good tenants at Lakeside village may bring people closer to enjoying the lakeside. Lakeside village is connected via bridges to Japanese Garden and Chinese Garden, bringing lakeside enjoyment to the residents staying nearby.
Jurong Lake District project which includes developments along Yuan Ching Road are yet to be developed, but once this area develops with waterfront hotels, it would revitalize the area and possibly lead the Jurong Lake District to become a reality much sooner – in 5 – 7 years time. Some HDB flats around Ho Ching road area in the Jurong Lake District are built in 1972 and are ripe for selective en-bloc redevelopment, at 42 years old.
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