Industry analysts say the result was not surprising, considering the high asking price.
However, in a curious twist of events, one company had submitted a bid for $1.728 billion - only to withdraw the offer on Thursday night.
The estate's marketing agent, Credo Real Estate, said yesterday in a statement that it had received two submissions at the close of the tender on Oct 13.
One of them was from a locally incorporated firm which offered the eye-popping $1.728 billion bid. The other expression of interest was from a 'local and prominent developer', which was believed to have made an offer below the reserve price.
Credo declined to name both firms, citing confidentiality agreements.
But it is understood that principal shareholders of the first firm which had offered above the reserve price are based in Indonesia, said Credo.
The firm was due to submit the tender deposit on instructions specified by the owners, but the firm's lawyers wrote in on Thursday night to withdraw the offer. They said the firm faced 'difficulty in their bankers processing the funds and remitting them to Singapore', said Credo.
Owners of the 528-unit development at Marine Parade yesterday said they had not heard any news officially from the sales committee, although a meeting for owners has been slated for tomorrow.
One owner, who declined to be named, said she was neutral as to whether the sale went through or not. 'Whether it sells or not, it doesn't really matter,' she said.
Chesterton Suntec International's research and consultancy director Colin Tan said the condo's failure to find a buyer 'simply confirms that developers are not going to pay unrealistic prices'.
'Developers are signalling to sellers that if you're not realistic, we won't be interested in putting in bids.
'They are mindful of the ability of home buyers to pay even higher prices. This is not sustainable so they're not willing to bear higher risks,' said Mr Tan.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that en bloc deals have not seen much success this year.
Dragon Mansion in Spottiswoode Park, as well as Changi Garden Condominium at Jalan Mariam, have been tendered with no deals done.
'Owners are still expecting pre-crisis price levels which developers are now not prepared to pay. Either the owners wait even longer, or prepare to accept a lower price,' said Mr Mak.
This might prove difficult. As another Laguna Park resident put it: 'I don't think anybody will sell at a lower price.'
Credo said it is still in negotiations with the local developer on a possible deal. Owners have until mid-December, when the collective sales agreement expires, to sell the estate via private treaty.
The former HUDC estate has a large land area of about 677,493 sq ft and a gross plot ratio of 2.8.
The sprawling 30-year-old condominium has been in the headlines over a spate of vandalism attacks on the property of residents who were not keen on the sale.
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THE PRICE FACTOR
'Owners are still expecting pre-crisis price levels which developers are now not prepared to pay. Either they wait even longer, or prepare to accept a lower price.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak
Source: Straits Times, 17 Oct 2009
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