THE building is over 40 years old, the paint is peeling and it does not have a swimming pool or other facilities.
- Picture: KENNETH KOH
But why are apartments there being snapped up at above-premium prices?
Who are the buyers?
That is the intriguing mystery surrounding freehold Tong Chuan Mansion, a private apartment building along Joo Chiat Road, next to Katong Mall.
Construction company and developer Tiong Aik Group initially wanted to buy it enbloc because it is bang in the middle of three other plots bought by the developer recently.
But the en-bloc attempt in June failed because it fell short of the 80 per cent majority consent required. 79 per cent voted in favour.
Failure to acquire the building means the developer's parcel is cut in two which would only allow it to build two small separate buildings instead of one big block.
The four plots, all freehold, have a combined area of about 100,000 sq ft - about the size of two-and-a-half football fields.
There are plans to build up to 19 storeys in one of the plots there.
In recent weeks, a mysterious group of buyers has entered the fray by snapping up units in Tong Chuan mansion.
At least 15 units have been snapped up for about $1.1 million each as of last week, according to residents we spoke to.
There are a total of 24 units there.
A total of 20 units (five more than the 15already bought by the mystery buyers) is needed to secure the 80 per cent majority consent to push for an en-bloc sale.
Property agents estimate that current price for an old walkup apartment in that area is about $600,000.
So, who is paying a premium for these old flats? And why, if not for the en-bloc potential?
RESIDENTS UNHAPPY
Some residents are unhappy with what seemed like a group of buyers trying to muscle in on them.
One resident, who only wanted to be known as Madam Lee, asked: 'What are they (the buyers) trying to do by buying up the units here? If the residents don't want to sell, they should get the message.'
Her family has been living there for the last 30 years.
The residents claimed they did not vote for the en bloc because of sentimental reasons.
Another resident, retiree K P Ang, 74, also turned down the initial en-bloc estimate.
He said: 'My family has lived here for the last 40 years. We're close to Parkway Parade, the beach and the coffee shops.'
His main worry is finding another unit in that area given the soaring property prices. His apartment measures about 1,200 sq ft.
Residents who have sold their units recently, like businessman Lee Chiang Poh, are puzzled by the latest interest.
Mr Lee, who is in his 60s, sold his two units there for $1.1 million each earlier this month. The initial en-bloc offer was $1.25 million.
He was also the chairman of the sales committee who had pushed unsuccessfully for the en-bloc sale in June.
He said in Mandarin: 'I'm very curious to find out who is trying to buy up all the units. The agent won't tell me and the lawyers won't tell me either. It's all very secretive.
'Even the name on the cheque given to me was not a company name, just an individual's name.'
Mr Lee, who has lived there for over 30years, said he cannot remember the name on the cheque.
Residents are speculating that Tiong Aik is buying up the units because of their vested interest there.
But those who sold their units recently said the names on cheques issued to them had the names of individuals, not the company.
NOT TIONG AIK
A Tiong Aik director, Mr Neo Tiam Boon, said neither the company, nor related parties is buying units there.
He would only confirm that they were keen to buy the place en bloc in June but failed to do so. He declined further comment.
But one seller we spoke to showed us a cheque which had the name Neo Tiam Boon on it.
We could not confirm if it belonged to the same director we spoke to.
Property agent Ms Katherine Woo, who said she is acting on behalf of a group buying up units at Tong Chuan, would not say if it was a Tiong Aik-related group buying up the units.
Ms Woo said she brokered the other property transactions for Tiong Aik in that area.
Tong Chuan is sandwiched between Sea Breeze Apartment and Chin Bee Mansion. An old 10,000 sq ft bungalow stands next to Chin Bee Mansion.
Sea Breeze was sold for about $54 million to Grovehill, whose directors are linked to the Tiong Aik Group, reported The Business Times in January this year.
The 56 owners there received just under a million for each unit.
Chin Bee Mansion, which has 18 units, was sold for around $18 million last month to a Tiong Aik-related company, Ms Woo said. Each unit was sold for about $1 million.
She also said the bungalow was sold for $11.8 million to the same company.
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