Collective sale hopeful Lakepoint Condo in private talks

Offers for collective sale hopeful Lakepoint Condominium fell short of its reserve price as developers start to move more cautiously in the light of new cooling measures.

The tender has closed and a private treaty negotiation process is in progress, PropNex Realty said in a statement on Wednesday.

The 99-year leasehold development was launched for collective sale with a reserve price of $640 million on Oct 21.

Policy changes, including higher additional buyer’s stamp duty (ABSD) rates, were implemented on Dec 16 to dampen the exuberance in the housing market.

Developers are now subject to 35 per cent ABSD, up from 25 per cent previously. Property analysts said this is likely to make developers more cautious when bidding for land and cause the collective sale buzz to fizzle out over time.

Ms Tracy Goh, head of investment and collective sales at PropNex, said the 10-week private treaty negotiation process will give interested parties “ample time” to review their plans and strategies.

“We remain cautiously optimistic about the collective sale tender, given the attractive site location and the limited new private housing supply in the immediate areas,” she said.

Lakepoint Condominium, which comprises 309 residential units, occupies more than 562,286 sq ft.

Under the 2019 Masterplan, the residential use site has a plot ratio of 1.4. It is near Jurong Lake District and within walking distance of Lakeside MRT station.

Separately, Sultan Plaza was put on the market again on Wednesday – the market’s first collective sale attempt since the latest cooling measures kicked in, sole marketing agent Teakhwa Real Estate told The Business Times.

Its reserve price has been lowered to $360 million from $380 million in the previous collective sale attempt in 2019.

Situated between Beach Road and North Bridge Road, the 44-year-old commercial property at 100 Jalan Sultan comprises 211 commercial units and 33 offices, totalling 244 strata lots.

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