Thomson View Owners Lower Reserve Price by 12% to Attract Investors
The Bright Hill Drive Site Seeks New Buyer After Unsuccessful Tender
Thomson View condominium is making a fresh attempt at securing a collective sale by lowering its reserve price by 12%, from S$918 million to S$808 million, following the closure of its recent tender on September 6 with no bids.
The decision comes as owners move into private treaty negotiations, hoping the revised price will attract potential buyers amid a quieter collective sale market.
Marketing agent Edmund Tie revealed that around 60% of owners have already consented to the new reserve price.
New Land Rate Set to Boost Interest
At the reduced reserve price of S$808 million, the land rate translates to approximately S$1,176 per square foot per plot ratio (psf ppr), factoring in both the land betterment charge and the lease upgrading premium required to extend the lease to a fresh 99-year tenure.
With an additional 8% bonus floor area, the effective land rate works out to about S$1,141 psf ppr.
This revised price will only take effect once more than 80% of owners by strata area and share value have signed the supplemental agreement.
Attractive Redevelopment Potential
Thomson View sits on a sizable land area of 50,197 square metres, zoned for “residential” use, with a plot ratio of 2.1.
The potential redevelopment can yield a total gross floor area of 112,792 square metres or roughly 1.2 million square feet, allowing for up to 1,240 new residential units based on an average apartment size of 85 square metres.
The current development consists of 200 apartments, 54 townhouses, and a shop unit, all built on a lease that started in 1975.
Swee Shou Fern, Edmund Tie’s head of investment advisory, noted that the decision to lower the reserve price could help bring developers and the owners closer to a mutual agreement.
“Lowering the reserve price is a significant step towards creating the meeting of minds between developers and the owners of Thomson View Condominium,” said Swee.
She also highlighted that the lack of new private housing projects in the neighbourhood offers developers an opportunity to meet demand from a growing pool of potential buyers.
A Long Journey Towards Collective Sale
Thomson View has been attempting to secure a collective sale since 2013, with multiple failed tenders over the years.
It was initially marketed at S$590 million in 2013, but the deal was voided due to incentive payments offered by the former marketing agent.
More recently, the condominium was relaunched for collective sale in July this year, but the tender again closed with no takers.
Despite these setbacks, the owners are optimistic that the lower reserve price will help them find a buyer.
Read the Thomson View Previous News Here:
Private Treaty Negotiations Open Until November
Interested parties have until November 14 to make an offer before the 10-week private treaty period comes to an end.
The revised reserve price and the large land size make Thomson View an attractive proposition for developers looking to tap into demand for private housing in a well-established residential area.
The latest effort follows similar moves by other developments like Pine Grove condominium, which also lowered its reserve price but ultimately did not succeed in its collective sale attempt.