Island View relaunching for collective sale at $575 mil, with 60% of owners supportive of lowering price to $532 million

Freehold condo Island View will be put up for collective sale for the second time, at the same reserve price of $575 million (Photo: PropNex)

Freehold condo Island View, on Jalan Mat Jambol in Pasir Panjang, will be relaunched for collective sale on March 5 with a reserve price of $575 million, according to a press release by marketing agent PropNex Realty.

The price remains unchanged from the previous tender, which launched last September. While the current reserve price is $575 million, PropNex says it is securing owners’ support to lower the reserve price to $532 million, with 60% of owners already in favour. The lower proposed reserve price would require at least 80% of the owners’ support to take effect.

The 72-unit development in District 5 spans 309,543 sq ft. Under URA’s Master Plan 2019, the site is zoned for residential use with a gross plot ratio of 1.4.

The current reserve price of $575 million translates to a land rate of $1,634 psf per plot ratio (ppr) after considering the 7% bonus balcony space and the land betterment charges.

If the owners collectively support a lower reserve price of $532 million, the new price will reflect a land rate of $1,542 psf ppr.

The initial collective sale tender for Island View closed on Oct 19, 2023, with no bids received. Subsequently, due to more cautious market sentiment, lowering the reserve price is a strategic move, says Laurence Wong, head of collective sales at PropNex.

He adds: “Developers’ sales hit a 15-year low in 2023, financing cost remains high, and private home buying interest has been relatively tentative of late, as some prospective buyers adopt a wait-and-see attitude.”

Wong maintains that Island View allows developers to acquire a large freehold site on the city fringe and could benefit from the future Greater Southern Waterfront development.

Island View has a redevelopment potential of up to five storeys high and could yield 402 new dwelling units, based on an average unit size of 100 sq m or 1,076 sq ft.

The collective sale tender for Island View will close on April 16 at 2pm.