Reflection of a market turnaround?
SINGAPORE – A joint venture between UOL Group and United Industrial Corporation (UIC) has bought a privatised former HUDC estate in Potong Pasir Avenue 1 for S$334.2 million.
Reflecting the turnaround in the property market, the value of the successful deals so far this year — totalling slightly above S$1 billion — is the highest since 2012, when 19 deals were transacted for S$1.2 billion, showed figures by Urban Redevelopment Authority (URA) and OrangeTee.
The 175-unit estate, known as Raintree Gardens, was launched for collective sale in September. The purchase price roughly works out to about S$1.89 million per unit. Recent executive condo launches include Treasure Crest and Northwave EC while existing ones include The Terrace EC, Brownstone EC, The Vales EC, Parc Life , Sol Acres EC, The Visionaire EC, Bellewoods EC, Signature at Yishun, The Criterion EC, Waterwoods EC, Skypark Residences, Wandervale EC, The Amore EC, Bellewaters EC.
Property experts had said the owners could get over S$315 million, or about $1.8 million per unit.
UOL said the purchase by UVD (Projects) will be funded by bank borrowings and internal resources. UVD (Projects) is the joint venture between UOL unit, UOL Venture Investments, and Singland Homes, a subsidiary of developer UIC.
The 201,405 sq ft plot, next to Kallang River and near Potong Pasir MRT station, has just over 70 years of lease left. It is zoned for residential use with a 2.8 plot ratio.
The collective sale attempt is a first for the estate, which was privatised in July 2014.