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The heady success of residential en bloc sales has prompted commercial property owners to join the collective sale fever even when the success rate of such deals pales in comparison with those of residential developments, reported the Straits Times.
In fact, no commercial site had been sold so far this year, with all 15 en bloc sites sold being residential developments.
This comes as the public tenders of Chinatown Plaza, Jalan Besar Plaza and ICB Shopping Centre closed without a sale being concluded.
Two critical factors affecting the success of commercial sites are pricing and location, said collective sale brokers.
Mixed-use sites with a retail component are more difficult to sell as the strata retail segment is weak. Meanwhile, the reserve price of residential-cum-commercial sites may be blown out of the realistic range by the commercial component, revealed a broker.
Commercial sites currently on sale include Singapore Shopping Centre, which has 29 years left on its lease. Located near Dhoby Ghaut MRT station, the retail-cum-office development in Clemenceau Avenue is expected to have a reserve price of around $250 million, said marketing agent Cushman and Wakefield.
The owners of Realty Centre in Tanjong Pagar have also named Cushman and Wakefield as marketing agent of the freehold development.
Cushman and Wakefield capital markets director Christina Sim said Goldhill Centre and Katong Shopping Centre, which features offices and shops, have reserve prices of $425 million and $580 million, respectively.
Also at varying stages of the en bloc sale process are People’s Park Complex (pictured), People’s Park Centre, Golden Mile Complex and Golden Mile Tower.
Photo credit: Nicolas Lannuzel, Wikimedia Commons
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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