The eminent Sim Lian incredibly plans to establish a condominium development with around 2,000 units on the Tampines Court area, which is developed for a cost of S$970 million, stated Business Times in their report.
This creates Tampines Court the largest collective sale as of year 2007, when the Farrer Court was successfully sold for S$1.3388 billion.
More than the initial fallback amount of S$952 million, the S$970 million charge comes out to a land amount of S$676 psf for each plan ratio, all encompassing of the differential premium of S$359 million for area strengthening and covering up the tenancy to 99 years, said the respected head of investment sales at Huttons Asia, Mr. Terence Lian which brokered the sale.
The owners are determined to obtain between S$1.75 million as well as S$1.71 million respectively.
Settled on a 702,164 square feet location, Tampines Court encompasses 560 classic units scatter across 14 blocks. The location can house a highest gross floor area of over 1.97 million square feet, based on its plan ratio of 2.8 underneath the URA (Urban Redevelopment Authority’s) year 2014 Master Plan.
A desirable estate, Tampines is distinguished to become more appealing with the Changi Airport’s development, said Mr. Ken Kuik, the managing director of the Sim Lian Holdings.
“This, joint with the reality that new MRT stations are about to happen in the Tampines site, will appeal loads of residential property purchasers as well as improve the investment proposal for the site.” he noted.
The group is making the buying through the Sim Lian (Treasure), a combined project between Sim Lian Development and the Sim Lian Land. It will also manage all throught the construction of the development.
“We’re viewing at a 12-storey development with simply around 2,000 units, varying from one to four bedrooms or even five bedrooms,” said Kuik.
A market spectator assumes Sim Lian’s breakeven price to stand at over S$1,200 psf, subsequently factoring in an expected rise in Development Charge rates comes the month of September 1 and other charges.
The en bloc sale will be focus to the Strata Titles Board’s (STB) endorsement and if required to the High Court, except that the owners’ agreed endorsement is gotten.
To escape paying additional purchaser’s stamp obligation on the land fee, Sim Lian will have to accomplish developing the development and sell all the units in 5 years beginning from the time the collective sale order is settled by the court or the Strata Titles Board.
Meanwhile, The Tapestry Condo is a new upcoming development at Tampines Drive 10 by CDL. This is the last plot after the successful launch of Qbay and The Alps Residences.