Chief Editor April 14 2023

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Lakeside Towers en bloc fail to meet reserve price of S$350 million

Lakeside Tower is a 99-year leasehold private apartment which comprises 144 units in two 16-storey blocks located along Yuan Ching Road.

The collective sale for Lakeside Tower was launched last month by JLL, their sole marketing agent.

The latest reserve price of S$350 million is 14.8 per cent higher than its 2018 reserve price of S$305 million.

Completed in 1981, Lakeside Tower is just next to Jurong Lake Gardens There are many schools nearby, with the Lakeside Primary School within 1 km from the site and others within 2km include Rulang Primary School, Fuhua Primary School, Jurong Primary School, Shuqun Primary School, Yuhua Primary School and Boon Lay Garden Primary School.

Lakeside Tower is only a ten-minute walk to Lakeside MRT Station, which is just one stop from Boon Lay MRT Station where Jurong Point is located.

Lakeside Tower has a land size of 14,236.1 sqm site which is zoned ‘Residential’ with a gross plot ratio (“GPR”) of 2.1 under the 2019 Master Plan. Based on the minimum average size control of 85 sqm, the site may accommodate up to 395 apartments.

At the collective sale reserve price of S$350 million, the corresponding unit land rate reflects about $1,244 per sq ft per plot ratio (psf/pr) after factoring in an estimated lease top-up premium with no land betterment charge.

If we factor the 10% bonus gross floor area (GFA), the corresponding unit land rate will be at about $1,196 psf/pr including lease top-up premium and a land betterment charge.

"The en bloc of Lakeside Towers is bound to fail given the steep reserve price set by its collective sale committees," said Mr Chia, Managing Director at PropertyForSale Pte Ltd. 

“Obviously the developers are cautious and they are not confident that the market will be receptive to a launch price of S$2,000 PSF for Jurong.”

Last year, the en bloc at Lakepoint Condominium closed without offers. It suffered the same predicament in December 2021. 

It was only back in July 2022 that the last en bloc sale in the Jurong area was concluded. Park View Mansions also at Yuan Ching Road was sold to joint venture comprising Chip Eng Seng, KSH Holdings, SingHaiyi Group for S$260 million equivalent to a land rate of S$1,023 psf ppr.