The en bloc fever has reached a new high with an attempt by the owners of Mandarin Gardens condominium to engineer what is set to become Singapore’s largest collective sale.
ZACD Group executive director, Nicholas Mak said, “Their asking price of S$2.5 billion will also be historically the highest asking price in any collective sale. This will be a very huge challenge to find developers with pockets deep enough to acquire and develop this site.”
With S$2.5 billion as the reserve price, analysts say developers still need to consider the upgrading premium, development charge, and Additional Buyers’ Stamp Duty as factors that pile on the costs.
This means that the total bill to acquire the lush estate in eastern Singapore, and to build a new one, they add, could eventually balloon to S$3 billion or S$4 billion.
Watch the Channel NewsAsia interview here (11:16 – 14:59).