The ageing Cairnhill Mansions near Goodwood Park Hotel in District 9 is expected to make its fourth attempt at an en bloc sale, according to media reports.
Owners are slated to start the process in June 2015, targeting to get the required 80 percent approval for the collective sale of the 50-year-old freehold building, which comprises 60 apartments and a penthouse.
Its last attempt at an en bloc sale happened in 2011, when the government began imposing property cooling measures. However, there was no buyer willing to pay a reserve price of $361.5 million ($2,308 psf). They also failed to find any buyers for the earlier collective sale attempts in 2005 and 2007.
While developers are constantly searching for prime freehold sites, they have moderated their bids given the sluggish luxury residential market, said Chestertons Singapore’s Executive Director and Head of Research Elaine Chow, adding that developers could become interested if the price is about $2,000 psf.
However, R’ST Research Director Ong Kah Seng believes the price should be lower at $1,500 psf ppr. At this rate, developers can sell the redeveloped homes for $2,500 psf.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
