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THE collective sale of Minton Rise, a former HUDC estate in Hougang, has been relaunched - after the property failed to find a taker at the owners' asking price when it was offered last December.

On sale again: The $209m reserve price works out to a unit land price of $236 psf of potential gross floor area

The owners' reserve price remains at $209 million. But apparently the estimated differential premium/development charge (DC) quantum based on March 1, 2006, DC rates will be lower at $84 million - down from $89.7 million - despite an increase in DC rates on March 1 this year. 'This is because the existing development baseline for the site has turned out to be slightly higher at a plot ratio of 1.541 based on a check with the Singapore Land Authority, instead of 1.53 as we thought it to be earlier,' says Sam Tan, CEO of marketing agent NRA Real Estate. NRA also estimates that it will cost the developer of the site a further $19.5 million - although this quantum is subject to confirmation by the authorities - to top up the lease from a remaining 79 years to the original 99 years.

The $209 million reserve price set by the owners works out to a unit land price of $236 per square foot of potential gross floor area inclusive of the DC and lease upgrading premium. NRA estimates the breakeven cost for a new condo at $508 psf. The 472,378.5 sq ft site has a 2.8 plot ratio (ratio of potential maximum gross floor area to land area), which means the plot can be redeveloped into a new condo with almost 1,100 units averaging 1,200 sq ft each.

The tender for Minton Rise closes on Aug 29.

Just how keen developers will be on the site, given the substantial size of the new development, remains to be seen. Also, suburban condos have not exactly been selling like hot cakes - unlike luxury and waterfront properties.

'Most ordinary people have not seen a substantial increase in bonuses despite the overall economic recovery,' said a director with a property consultancy firm. 'What could help to spur home-buying in the lower and middle tiers - whether it's HDB resale, or suburban 99-year private condo - is a substantial bonus increase. That would help buyers make the 5 per cent cash downpayment.'