Elias Green is the latest condominium to hit the en bloc market in search of a buyer.
According to PropNex Realty’s Richard Hau, the owners of the 419-unit Pasir Ris condo will launch a public tender for the site on Monday with a S$780 million reserve price.
This means that the owners of the 516,877 sq ft development could each walk away with S$1.7 million to just below S$2 million.
The condo, which was completed in 1994, has an allowable gross floor area (GFA) of 723,627 square feet and a plot ratio of 1.4, which translates to S$1,078 per square foot per plot ratio (psf ppr).
Mr Hau said that a potential buyer might be interested in raising the plot ratio to 2.1, similar to developments in the immediate surrounding.
Should that happen, the plot ratio would go down to about S$719 psf ppr he said. There would also be a development charge of S$60 million.
Analysts are still doubtful about the financial viability of the asking price. International Property Advisor’s Chief Executive, Ku Swee Yong said that considering the site is located on a busy highway the price is steep.
According to him developer would have to launch the development upward of S$1,450 psf to make a decent profit from the project.
ZACD Group’s Executive Director Nicholas Mak also shared similar concerns about Elias Green’s reserve price and said that Coco Palms the last major development in the area sold for an average price of is S$1,094 psf in the last 16 months.
The tender closes on Jan 11, 2019.