ST: Two River Valley condos fail to get asking prices - 31 Jul 07

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July 31, 2007
Two River Valley condos fail to get asking prices
Pacific Mansions sought $2,400 psf; Rivershire asked for $2,200 psf
By Joyce Teo, Property Correspondent

RECENT high-profile collective sales of Pacific Mansions and
Rivershire have both failed to attract bids from developers willing
to match the prices being sought by owners at the two River Valley
condominiums.

Marketing consultants of both sites, however, are understood to be
negotiating with 'interested parties' to see if they can at least
achieve the reserve price - ranging from 10 per cent to 20 per cent
below the asking price.

Asking prices at the two condominiums were optimistically priced at
the very top end of market levels.

The current collective sale record stands at $2,338 per sq ft (psf)
of potential gross floor area at The Ardmore in the prestigious
Ardmore area.

Owners at the 45-year-old Pacific Mansions in River Valley Close,
however, asked for even more - about $2,400 psf of potential gross
floor area. This placed its total price at $1.18 billion.

Although the property market is booming, the perception is that the
asking price for Pacific Mansions is high and unachievable for now,
said a source.

Rivershire in the Leonie Hill area was put up for sale in late June
at $348 million, or a hefty $2,200 psf of potential gross floor area.

The recent hike in development charge has no impact on the sites, as
no such charge is payable for both sites.

There is talk that the Pacific Mansions' tender had attracted a few
expressions of interest but no firm bids.

Mr Steven Ming, director of investment sales at Savills Singapore,
which is marketing Pacific Mansions, only said: 'We have received
interest, and we are in discussions with the interested parties.'

Knight Frank, which is marketing Rivershire, is also believed to be
in talks with keen parties.

Nearby, owners of the 99-year leasehold Grangeford Apartments, who
had asked for $2,016 psf of potential gross floor area, also failed
to get what they had asked for.

The best they got was an offer from Overseas Union Enterprise -
believed to be around $1,820 psf - subject to approval by owners
controlling 80 per cent of the property's share values.

The deal is likely to be sealed soon. CB Richard Ellis, which is
marketing the site, said it is waiting for lawyers to confirm the
approval level.

The absence of finalised deals for these condos has not stopped
others from hitting the market at relatively high prices.

These include Trendale Tower in the Cairnhill Road area, which was
relaunched for sale in late July at $2,477 psf of potential gross
area. Its earlier asking price in May, when it was put up for sale
via an expression of interest exercise, was at $2,200 psf of gross
floor area.

Recently, City Towers in Bukit Timah Road was also relaunched for
sale at a revised asking price of $2,100 psf of potential gross floor
area.

Property consultants say the residential market is still rosy, though
some collective sales may stall as the owners' asking prices are far
beyond what the market is currently willing to pay.

'It really depends on the site's potential,' said one.!