Homeowners intending to sell collectively for better pricing will be disappointed to find property firms cutting deals with individual sellers
Owners of flats in old buildings who expect to gain a windfall from collective sales of their properties to developers by tender will be disappointed by some developers' latest strategy in acquiring old units for redevelopment.
Even though collective sale is a short cut for developers to gain 100 per cent ownership of old buildings for redevelopment, they have opted to buy units from individual flat owners, property consultants say.
Such a move will take a lot of time but can help developers save on costs.
Willis Mak Tse-hing, a director of investment at Colliers International, estimated that developers can save 20 per cent of acquisition costs through this strategy, compared with joining tenders in collective sales.
Individual owners putting up their flats for collective sale ask for a tender reserve price usually more than what developers want to pay, Mr Mak said.