MOST of the owners at an apartment block built just eight years ago want to sell their units as a package to capitalise on the booming high-end market.
The owners at the 20-unit Casa Novacrest at Cairnhill want a conventional collective sale but have failed to win the minimum level of consent, which is 90 per cent for blocks less than 10 years old.
So owners of 17 of the units have decided to sell their flats as a single entity with an asking price of $25 million.
This could reap each of them almost $1.5 million, or 35 per cent above the market value, and works out to $965 per sq ft (psf) for the 17 units.
A developer could refurbish the flats at about $50 psf and re-sell them.
But marketing agent Credo Real Estate has a second option: selling the entire block for about $30 million if 90 per cent of the owners agree.
Associate director Wee Sing An said Casa Novacrest was the first site offering buyers these two options.
Casa Novacrest has used up its maximum allowable gross plot ratio, but values have risen so much that its land value could exceed the total value of the apartments, he added.
Credo Real Estate had marketed Casa Novacrest together with Peck Hay Mansion, but it could not then get the minimum consent from Casa Novacrest owners to proceed.
The 19-unit Peck Hay Mansion has since been sold to Bukit Sembawang Estates for $63.6 million.
Casa Novacrest is also surrounded by successful collective sale sites such as The Vermont and Venus Mansion, and is near Orchard Scotts.
'With the trend of buyers favouring larger units...developers should find ready takers for units at $1.8 million apiece, reflecting approximately $1,200 psf,'' said Mr Wee.
JOYCE TEO
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