Why did Wing Tai pull out of the Holland Tower en bloc deal

Wing Tai Holdings has withdrawn its purchase of Holland Tower for $76.3 million, citing “non-fulfilment of certain conditions,” to which the Singapore-listed property developer offered no further comment when contacted. The site, which sports a freehold status and sits at 10 Holland Heights, is zoned “Residential” and lies within the protected Holland Park Good Class Bungalow Area.

In a press release on March 15, the exclusive marketing agent for Holland Tower, SRI Capital Market managing partner Low Choon Sin, stated that the property’s built-up area of 43,691 sq ft, fell in line with its existing gross plot ratio of 2.0. He believed that developers might be able to redevelop the site, subject to approval from relevant authorities.

Wing Tai had hoped to leverage the site’s superior location to craft a luxurious, iconic development with stunning unblocked views of the lush greenery in Holland Park and the Singapore city skyline. However, stringent development controls, such as height and gross floor area, plus the 15m setback requirement, due to the proximity of a Category 2 road, may have derailed their plan.

Notwithstanding this, the $76.3 million transacted price for Holland Tower translates to a land rate of $1,764 psf per plot ratio – relatively cheap, considering the breakeven cost is estimated to be about $2,800 to $2,900 psf, in line with a typical redevelopment site in the prime Holland area.

Wealthy foreign buyers typically eye such condominiums in the Core Central Region (CCR), however government cooling measures on April 27, which doubled the additional buyer’s stamp duty (ABSD) for foreign buyers from 30% to 60%, has put a dampener on demand.

The Woodlands Champions Way Condo is located directly across from Sembawang Park, providing an ideal place to stay for those who wish to escape from the hustle and bustle of the city. The development features a variety of luxury amenities, including an indoor swimming pool, jacuzzi, gymnasium, and a multi-purpose hall. There is also a sky terrace, offering breathtaking views of the city skyline. Residents can also enjoy a host of leisure activities, including yoga, tai chi, and aqua classes. In addition, the Champions Way Condo offers a 24-hour concierge service and full security system, providing the utmost comfort and luxury for all residents.

The government’s move seems to have influenced developers like Shun Tak, who in December 2021 backed out of an en bloc purchase of High Point for $556.7 million – essentially forfeiting their $1 million tender deposit – after the increase in ABSD for foreigners to 30%.

It is likely that Wing Tai had already paid the 5% down payment on the Holland Tower purchase. With the collective sale committee having applied to the Strata Title Board (STB) for a sales order to be issued to the developer, it is yet to be seen how Wing Tai’s backing out of the deal will affect the already weak collective sale market.