Enbloc potential along TEL may ring louder

With the announcement of the Thomson-East Coast Line (TEL), there were talk about the possible rise in collective sales in the District 15 area, especially those near the designated stations.

Older developments that are 20 years or older and having less than 200 units each, in areas such as Amber Road, Katong, Marine Parade and Siglap will be especially in developers’ radars, given the smaller purchase quantum and corresponding lower risks. Some of the potential developments, which are freehold, include Amber Point, Parkway Apartments, Katong Park and Equatorial Apartments. All are more than 20 years old and given their smaller plot areas, may be palatable enough to raise developers’ interests.

Meanwhile some developments along the TEL have already made several attempts to en bloc like the following:

– Laguna Park, a 99-year leasehold development with 63 years left on its lease. The last en bloc attempt was in October 2011, where the asking price was $1.25 billion, equivalent to $954psf ppr.

– Hawaii Tower, a freehold development that last attempted to en bloc in 2011 as well with an asking price of $700 million.

So with the announcement of the TEL these two developments may now stand a better chance of finding buyer

These leasehold/freehold developments may also have potential for enbloc by the time the TEL begin construction: King’s Mansions, Costa Rhu, Pebble Bay, Mandarin Gardens, Park Shore and Casuarina Cove

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