Island View To Be Relaunched For Collective Sale At Current Reserve Price Of $575 Million

Island View to be relaunched for collective sale at current reserve price of $575 million, with 60% of owners supportive of lowering the reserve price to $532 million.

04 March 2024, Singapore – PropNex Realty, Singapore’s largest real estate agency has today announced that it plans to relaunch the collective sale tender of freehold development, Island View in Jalan Mat Jambol in Pasir Panjang on 05 March 2024 at the current reserve price of $575 million. This translates to a land rate of $1,634 psf per plot ratio (psf ppr), including the 7 per cent bonus balcony space and the latest land betterment charge (LBC).

However, PropNex said it is making progress in securing owners' support for the collective sale at a lower reserve price of $532 million, which will reflect a land rate of $1,542 psf ppr, including the 7 percent bonus balcony space and LBC, with 60% of the owners already in favour. 

Island View in District 5 was previously put up for collective sale tender on 19 September 2023 with a reserve price of $575 million; the tender had closed without bids on 19 October 2023.

Laurence Wong, Head of Collective Sales at PropNex, said, “Since the previous collective sale tender launch for Island View, the general market sentiment has become more cautious. Developers’ sales hit a 15-year low in 2023, financing cost remains high, and private home buying interest has been relatively tentative of late, as some prospective buyers adopt a wait-and-see attitude. The decision to lower the reserve price is a strategic move to make the development more attractive to potential buyers, in view of the prevailing market conditions. We think that Island View presents a compelling opportunity for developers to acquire a large freehold site in the city fringe that could benefit from the future Greater Southern Waterfront development.”

Completed in 1984, Island View - which comprises 72 residential units – sits on a freehold, sprawling elevated site spanning 28,757.3 sq m (approx. 309,543 sq ft). Under the Master Plan 2019, the site is zoned for residential use with a gross plot ratio of 1.4. It has a redevelopment potential of up to 5 storeys high and could yield 402 new dwelling units, based on an average unit size of 100 sq m.

The successful tenderer will be able to build an iconic development in District 5 which will be set apart from the other residential projects in the area given its sizable land plot, which offers the potential to provide a wide range of condo facilities and common spaces for residents. In addition, the Island View site faces Singapore’s southern coastline, possibly offering units on higher floors some seaview.

There is a good spread of amenities in the surrounding areas, such as Pasir Panjang Food Centre, Alexandra Village Food Centre, Telok Blangah Market, VivoCity mall, as well as the HarbourFront Centre, which is slated for redevelopment. It is also near various recreation offerings and attractions being a stone’s throw from The Southern Ridges, which links up with the Hort Park and Mount Faber via elevated boardwalks and trails, and minutes’ drive to the Sentosa island.

The site also enjoys excellent connectivity as it is within 10 minutes’ drive to the central business district and a short walk to the Pasir Panjang MRT station on the Circle Line. The Circle Line offers direct access to Kent Ridge where the National University Hospital and the National University of Singapore are located, as well as the one-north R&D precinct. Come 2026, connectivity via the MRT will be further improved and commuting times shortened when the Circle Line is fully completed, with the opening of three stations (Keppel, Cantonment, and Prince Edward Road).

Mr Wong added, “Freehold properties remain alluring to home buyers as they tend to better retain value over time and are suitable for legacy planning. Apart from the freehold land tenure, the Island View site is also located close to the city and is easily accessible to key employment nodes, including the CBD, Mapletree Business City, Science Park, Alexandra Technopark, one-north, as well as the Greater Southern Waterfront precinct in the future.

“In February 2024, Terra Hill, a new project adjacent to Island View, sold three large units (1,894 - 3,035 sq ft) at an average price of about $2,780 psf. This illustrates the healthy demand for premium properties in prime locations and highlights buyers' inclination towards high-quality real estate, particularly spacious homes situated on elevated terrain with unobstructed views,” Mr Wong said.

Schools nearby include Blangah Rise Primary School, CHIJ St. Theresa’s Convent, Bukit Merah Secondary School, Anglo-Chinese School (Independent), Anglo-Chinese Junior College, Singapore Polytechnic, United World College of South East Asia (Dover Campus), and ISS International School (Preston Campus).

The collective sale tender will close on 16 April 2024 at 2pm. Tender documents are to be submitted at the PropNex office.