Yes, it is a 3rd time lucky for Crystal Tower owners. It was reported on the Business Times that Allgreen Properties had emerged as the winning bidder to acquire Crystal Tower, in a fiercely contested tender that attracted a total of 12 bids. Allgreen Properties offered S$180.65 mil for the freehold site, reflecting a land rate of S$1,840 psf ppr. Allgreen’s offer price is a huge premium of 31% above the asking price of the owners!
An aggressive bid by Allgreen? What was the developer thinking?
Few months back, the nearby Sloane Court Hotel site was snapped up by Tiong Seng and Ocean Sky at a land rate of S$1,616 psf ppr (including Development Charges). Allgreen’s offer price for Crystal Tower would be 14% higher than what Tiong Seng and Ocean Sky paid for their site.
SPK estimates that based on Allgreen’s offer price, the breakeven selling price for the new project will be around S$2,300 psf to S$2,400 psf. To make a decent profit margin of 10% to 15%, Allgreen will probably have to sell this project at S$2,600 psf to S$2,750 psf.
Was Allgreen overly-aggressive in its bid? Did it overpay for the site?
These are difficult questions to answer at this point in time.
But what we can be sure is that developers are returning to the prime districts and this is probably a hint of their optimism on the prime residential property segment. Allgreen’s price might look high at this point in time, but if the property prices in CCR move in line with the optimism of the developers, then what Allgreen is pricing in right now might not be too far away from the prices in future.
Any brave soul out there who bought the penthouse at S$9.8 mil?
The penthouse unit was listed for sale at S$9.8 mil in October 2017. If you were brave enough to buy the unit a month ago, then congratulations to you!
Base on Allgreen’s offer price, the penthouse owner will receive about S$12.3 mil while the rest of the owners will pocket around S$6 mil to S$6.6 mil each. If you had bought the penthouse at S$9.8 mil, you could have easily pocketed a tidy profit of close to S$700k, after deducting stamp duty and additional seller stamp duty!
Congratulations to the 28 multi-millionaires at Crystal Tower!