Singapore’s Pine Grove in relaunch for collective sale at US$1.45bil
SINGAPORE: Pine Grove condominium will be relaunched for collective sale at S$1.95bil (US$1.45bil) after its collective sale committee (CSC) failed to get the 80% mandate to lower the reserve price to S$1.78bil. The tender closed yesterday.

Efforts were under way to get the mandate for the lower reserve price until the close of tender, marketing agent ERA Realty Network’s managing director of investment sales, Tay Liam Hiap, told The Straits Times.

As at March 3, over 62% of home owners at Pine Grove, which has a remaining lease term of 59 years, had consented to the lower reserve price.

There were enquiries from a few developers as at February after more than 60% of the 660-unit condominium’s owners signed a supplemental agreement to lower the reserve price to S$1.78bil.

At S$1.78bil, the land rate works out to S$1,341 per sq ft per plot ratio (psf ppr). This is after factoring in the 10% bonus gross floor area, an estimated land betterment charge (LBC) of S$987mil for intensification and a lease upgrade to a fresh 99-year one.

Developers pay an LBC for the right to enhance the use of some sites or to build bigger projects on them.

The LBC rates remained unchanged in the round of rate revision on March 1.

Pine Grove’s home owners began signing the supplemental agreement at an extraordinary general meeting held on Jan 21.

A Jan 18 letter from ERA Realty to owners said the S$1.78bil price was found to be a “fair valuation” by Premas, a unit of Cushman & Wakefield.

This assessment includes the full potential of redeveloping the 893,218 sq ft site into a 2,050-unit development.

At S$1.95bil, the land rate works out to $1,440 psf ppr. This is after factoring in an additional 10% bonus gross floor area and an estimated LBC of S$1.02bil for intensification and a lease upgrade to a fresh 99-year lease.

ERA chief executive Marcus Chu noted that the support of those who signed the supplemental agreement indicates owners’ strong readiness to sell their units through this collective sale attempt.

“The recently revised additional buyer’s stamp duty (ABSD) remission clawback for residential projects is also a positive development for large collective sale sites like Pine Grove.”

Currently, developers buying land on or after Dec 16, 2021, have to pay 35% ABSD that may be remitted upfront, subject to conditions, plus 5% ABSD that is non-remittable.

If the developer fails to sell its residential units within five years from the date of buying the land, the 35% remittable component will be clawed back with interest, regardless of the number of unsold units.

With effect from Feb 16, 2024, projects with at least 90% of units sold at the five-year sale timeline will be subject to a lower ABSD remission clawback rate.

In the wake of these policy adjustments, more residential projects are again trying their luck at a collective sale, albeit at lower prices.

Thomson View condominium was put up for collective sale in late February at a lower reserve price of S$918mil after unsuccessful attempts in 2022 and 2021 at S$950mil.

Thomson View’s marketing agent, Edmund Tie, said the site could be redeveloped into a project with 1,240 residential units based on an average apartment size of 915 sq ft.

Freehold condominium Island View in Pasir Panjang was relaunched for sale on March 5 at S$575mil, but 60% of owners have given their consent to lower the reserve price to S$532mil in view of softer market conditions, according to marketing agent PropNex Realty.

The condo’s CSC is now collecting signatures to get an 80% mandate for the lower price. — The Straits Times/ANN
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Pine Grove condominium will be relaunched for collective sale at S$1.95bil (US$1.45bil) after its collective sale committee (CSC) failed to get the 80% mandate to lower the reserve price to S$1.78bil.