Savills Singapore today announced the launch of Minbu Villa en bloc. The Minbu Villa en bloc sale site is located in the prime Novena neighbourhood.
Completed in 1981, the 10-storey freehold development comprises 33 apartments and a penthouse. It occupies an elevated plot of 3,569.9 sq m (or 38,426 sq ft) at the quiet cul-de-sac of Minbu Road. Under the 2014 Master Plan, the site is zoned for residential use with a gross plot ratio of 2.8.
Subject to approvals from the relevant authorities, the Minbu Villa en bloc sale site may be developed up to 36 storeys with an allowable gross floor area of 9,995.72 sq m (or 107,593 sq ft).
There is no development charge payable including the additional 10% gross floor area for balconies due to the high development baseline of 11,648 sq m.
The Minbu Villa en bloc sale site, conveniently situated within the exclusive residential Novena/Balestier enclave, is accessible via both Moulmein Road and Balestier Road. Popular condominiums in the surroundings include Pavillion 11, d, The Ansley etc. The Minbu Villa en bloc sale site also enjoys excellent connectivity islandwide via the Central and Pan Island Expressways and the Novena MRT station.
The site is located in close proximity to the Novena area which boasts 4 major malls namely Velocity @ Novena Square, Square 2, United Square Shopping Mall and Royal Square at Novena, the latest addition. It lies just at the doorstep of Health City Novena which is poised to be the biggest healthcare hub in Singapore by 2030. In addition, it is minutes away to Balestier, a popular hotspot known for local cuisines and the integrated hotel/retail Zhongshan Park development.
The Minbu Villa en bloc sale has a Reserve Price of S$145.8 million or land rate of S$1,355 psf ppr.
Presently, more than 60% of the owners by share value and strata area have signed a supplemental agreement to lower the Reserve Price to S$129.1 million or a land rate of S$1,200 psf ppr at the gross plot ratio of 2.8. In-principle approval has been granted by the Singapore Land Authority for the alienation of an adjoining state land of approximately 195.9 sq m which may potentially lower the land rate by another $34 psf ppr.
“Strategically located at the highest point of Minbu Road, Minbu Villa presents a choice opportunity to acquire an affordable site with great attributes and unrivalled views of the Novena skyline. In addition, the Balestier/Novena enclave has traditionally been popular with owner-occupiers, investors and expatriates due to its convenient location and the abundance of malls and amenities.” said Suzie Mok, senior director of Investment Sales at Savills Singapore who is handling the sale.
The tender for Minbu Villa en bloc sale will close at 3 pm on 18 December 2018.
Mr Paul Ho, chief mortgage consultant at iCompareLoan, said that the subdued optimism of the collective sale market could be one main reason why more than 60% of the owners of the Minbu Villa en bloc sale site are agreeable to lower the Reserve Price from S$145.8 million to S$129.1 million. Mr Ho added that the subdued residential property market enthusiasm is also a big blow to en bloc beneficiaries shopping for a replacement property, as well as investors.
“Whatever decision en bloc sale committee makes, it is better to make it fast so that the sale (or non-sale) can be concluded with minimal delay and maximum benefit to the owners,” said Mr Ho.
He added: “One way he said was to conduct a Collective Sales Agreement (CSA) as well as concurrently collect a “Non Collective Sales Agreement (NCSA)”, so that once a NCSA reaches 20%, the collective sale process is called off. There is really no point to drag on.”
An en bloc sale committee must be mindful that as collective sale process takes 20 to 30 months to complete, during this time, the owners typically do not have sufficient funds for down-payment and their CPF OA funds are tied up in the property, hence they cannot buy a new condominium early.
By the time the transaction is completed in 20 to 30 months later, the property prices would have already moved up 10 to 20 per cent. This is already evidenced by sellers of older estate asking higher prices. Hence if the process takes 20 months to 30 months, owners may need to consider the cost of a replacement unit by that time, else they may want to hold up a higher selling price.
Mr Ho pointed out that the rules are quite onerous and stringent and is governed by the Land Titles (Strata) Act – section 84A. Over the years, additions and amendments by the Ministry of Law to the en bloc law have made the collective sale rules even tighter.
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