Spring Grove condominium, in upmarket Grange Road, is going back on the market just three years after a failed collective sale bid.
Owners in the 325-unit estate believe they can get at least $1 billion “if not more”, a sale committee representative said yesterday. They had asked for $1.39 billion in 2014.
A $1 billion price works out to about $1,807 per sq ft (psf), based on a maximum gross floor area of 553,377 sq ft. This is above the $1,285 psf to $1,438 psf that units in the estate have fetched so far this year.
Upbeat home owners cite the development’s prime location and the ongoing collective-sale fever as reasons for their sunny outlook.
Corporate adviser Adrian Loh, the chairman of the Spring Grove sale committee, said the “immense experience and knowledge” that owners gained from the failed sale bid should speed up the process this time round.
“We don’t have a price in mind, but it will be a project worth a billion dollars or more,” said Mr Loh, 45, who has lived in the estate since 2010.
The sale committee pointed to the condo’s proximity to the residential areas of Chatsworth Road and Bishopsgate, as well as the Orchard Road retail belt and the central business district.
One key issue that could crop up surrounds the estate’s ownership, given that it was built on the site of a former United States diplomatic residence. The land goes back to the American government after the expiry of the 99-year lease, which has 73 years left on the clock.
“The developer will have to pay the owners of Spring Grove as well as the US government… to top up the lease,” said Mr Loh.
Property analyst Nicholas Mak, executive director of ZACD Group, told The Straits Times: “There are quite a lot of sales en bloc going on now, but not that many are in the prime district, so that’s something going for this development.
“But properties where the asking price goes beyond $1 billion are challenging for developers… They do present some financial risk.”
The nine-person sale committee that was formed last Saturday is on the lookout for marketing agents and law firms. Knight Frank was the exclusive marketer for the development the last time round.
Recent collective sales this year include Tampines Court, which went for $970 million, and Eunosville and Rio Casa.
Meanwhile, former HUDC estate Pine Grove launched its third attempt this month, joining other hopefuls on the market such as Jervois Gardens and Amber Park.