Chuan Park condo finally sold after 4 attempts at $890m, 5.11% lower than reserve price

PHOTO: The Straits Times file

After four attempts at a collective sale, Chuan Park condo has finally closed a deal via private treaty. The condo's previous collective sale, which launched this year on March 14 and closed on April 26, failed to garner any bids. 

Its current and final sale was brokered for 5.11 per cent lower than its $938m guide price, at $890m, offered by developers Kingsford Group and MCC Singapore. A sales and purchase agreement was signed last week with the condo's collective sale committee (CSC). 

In 2018, its second collective sale attempt at $900m (an increase from its first attempt at $790m) did not secure the 80per cent consent needed from its owners.

An owner's meeting has been scheduled for July 25 to disseminate information about the next stages and the estimated timeline for the sale.  

Chuan Park

Located in District 19 along Lorong Chuan, Chuan Park was built in 1985, leaving around 62 years on the 99-year lease condo. 

With the condo on a site area spanning 400,589 sqft with a gross plot ratio (GPR) of 2.1, it shakes out to an achievable gross floor area (GFA) of 841,236 sqft. 

A new development holds the potential to be furnished with 900 to 919 residential units - more than twice the number of its current units. It currently has 444 residential units and two strata commercial units. 

Taking the current reserve price of $938m plus an upgrading premium of $192.62m to expand its existing floor area by 7 per cent, the price per sqft per plot ratio works out to be $1,256. 

The existing plot ratio means the development charge is not payable. 

We've previously covered the many reasons why the en bloc sale may have fallen through - it may also be why Chuan Park garnered a lower offer than its asking price. 

ALSO READ: Chuan Park up for collective sale for the fourth time

This article was first published in 99.co.