Thomson View Condo Back on Market with Unchanged S$918 Million Reserve Price
Thomson View Condominium is back on the market for collective sale, holding steady with its reserve price of S$918 million. This relaunch comes after a previous tender closed on April 18 without securing a deal.
The reserve price of S$918 million translates to a land rate of S$1,275 per square foot per plot ratio (psf ppr), which includes an estimated S$630 million to upgrade the lease to a fresh 99-year period and cover the land-betterment charge for increased land use. The overall acquisition cost for Thomson View Condo is approximately S$1.55 billion.
Marketing agent Edmund Tie announced on July 3 that the authorities have no objections, in principle, to redeveloping the condominium to yield 1,240 units, each with an average size of 85 square meters. Additionally, the developer could benefit from a 7% bonus gross floor area (GFA) beyond the allowable gross plot ratio, which can be used for balconies.
Situated on a 50,197 sq m plot zoned for residential use with a plot ratio of 2.1, the Thomson View site can generate a total GFA of 112,792 sq m. The current lease began in 1975, and the development includes 200 apartments, 54 townhouses, and one shop unit. Each unit could receive between S$2.5 million and S$4.39 million.
Swee Shou Fern, Edmund Tie’s head of investment advisory, commented, “Today’s buyers are more discerning, considering factors beyond price, such as location. This new project offers an ideal setting for urban dwellers and families to enjoy immediate access to amenities – live, work, play, learn, all at their doorstep.”
Previously, Thomson View was marketed for S$918 million in February after unsuccessful tenders in May 2022 and November 2021, initially priced at S$950 million. Earlier attempts to sell in 2018 and a voided deal in 2013, originally priced at S$590 million, highlight the challenges of the collective sale market.
The market has been quiet, with several tenders closing without sales, including Pine Grove’s recent fifth attempt since 2008, which closed in May with no bids. The last successful deal was in December 2023 for a small project at 132 Sophia Road, sold for S$33.59 million at a land rate of S$1,172 psf ppr.
Other notable sales include the freehold Kew Lodge, bought by Aurum Land for S$66.8 million in May 2023, and Chuan Park, sold for S$890 million to Kingsford Group and MCC Singapore. Meyer Park also sold for S$392.18 million to a UOL-Singapore Land Group joint venture in February 2023 who will redevelop into a new seaview project Meyer Blue.
The tender for Thomson View Condominium will close on September 6.
