TODAY ONLINE : Another condo rushes to go en bloc, but is this a bad time?

Another condo rushes to go en bloc, but is this a bad time?

05:55 AM Apr 08, 2010

SINGAPORE - Another group of homeowners is hoping to cash in on the red-hot property market by launching an en bloc sale.

Toh Tuck Apartment, off Upper Bukit Timah Road, has been put up for sale by tender. The freehold residential site comprises 13 apartments of roughly the same size, each averaging 223 square metres.

At the asking price of $35.5 million, each owner is expected to get an average of about $2.73 million for their unit. This translates to a plot ratio of $650 per square foot.

Property analysts say that developers may be less likely to go for collective sales, given the market's bullishness.

Mr Donald Han, managing director of Cushman and Wakefield Singapore, reckons developers will prefer buying Government land since the process will be quicker.

This is because developers do not want to land themselves in a situation where the en bloc sale is long drawn out and risk getting caught in a possible market correction.

Marketing agent HSR says the final amount each owner will receive depends on the transacted price.

The 40,449-square-foot site has a permissible plot ratio of 1.4 and can be built up to five storeys.

HSR International says the site can be redeveloped into 75 apartment units.

It said the site has achieved 100-per-cent consensus from the owners. Tender for the sale closes on April 23. Julie Quek