En Bloc59 affordable leasehold property with en bloc potential that are worth a second look!

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  • November 9, 2017
  • 38 min read

Druce

Druce is the Chief Editor at the Stacked Editorial. He was first interested in property since university but never had any aspiration to become an agent, so this is probably the next best thing.

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Mrs. Wong
Mrs. Wong

Is there a potential of en bloc sales for Eastpoint Green Condo

Ryan
Ryan

Hi Mrs. Wong, Thanks for your question! When we consider en bloc, we think of whether the developer can make money and how risky the project is. From our research, we found a condo with a similar plot size and GFA to Eastpoint Green – Simei Green (a condo nearby) and they had a collective bid with a reserve price of $820m. Using this, we can see that it translates to a high selling price of approximately $1,811 when the new project is launched (accounting for lease top up). This would be considered high for a condo in Simei, and… Read more »

Tan
Tan

Hi Druce, thanks for the great article. Some of those you listed have already gone enbloc so great foresight! Can I ask you does Leonie Gardens have potential for a successful enbloc (3rd time)? Why was it the first time there was no taker as well?

Ryan
Ryan

Hi Tan, the reason why Leonie Gardens doesn’t seem to have a lot of en bloc potential is because there are no takers due to the additional duties developers incur. The reserve price translates to $2,104 psf based on existing gross floor area, or $2,021 psf ppr if a 10 percent balcony space is included, subject to approval – this is too high. Another issue is that Irwell Bank GLS is $1,7xx psf ppr only, and based on the reserve price the owners expected $2,0xx psf ppr. Pacific Mansions en bloc was only $1,8xx psf ppr and led to a… Read more »

Tan
Tan

Hi Ryan,
Thanks for the detailed analysis. My sentiments too, that the development charge, top up lease and differential premium would add up just too much like $300m? On top of the $800m price tag. Oh yes, and also Horizon Tower is a close competiton for enbloc as well..? So that makes it extra hard for enbloc? Hmm…at $3000-$3600 psf for 99 year lease, I think developers really put on their brakes…

What are your thoughts about seafront properties in Sentosa (not enbloc)?

Ryan
Ryan

Hi Tan! Seafront properties in Sentosa as a form of investment?

Tan
Tan

For own stay and capital appreciation. Or is harbourfront (caribbean,keppel, corals) a better /safer option? My concern about sentosa is because it’s not mainland, it can be rather hard to sell in future?

shailly
shailly

hi Ryan

what are the chances of Peace Mansion going enbloc this year.

shailly
shailly

hi Ryan

thanks for the informative article. what are your views on balestier point , which is a mixed freehold development

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