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More projects hopping on collective sale train
THERE appears to be no lack of new projects looking to jump onto the collective-sale train, even as more public tenders have closed without concluding a sale.
Goodluck Garden, a condominium along Toh Tuck Road, has launched a collective-sale tender with a reserve price of S$550 million.
This marks the fourth collective sale launch this week, following that of Eunos Mansion and Makeway View, as well as commercial property ICB Shopping Centre.
Other developments that have kickstarted the collective-sale process include condominium project Far Horizon Gardens, which just formed its collective-sale committee (CSC); it is now shortlisting marketing agents.
Commercial properties Golden Mile Complex, Golden Wall Centre and Shenton House made further progress in their attempts at an en bloc sale, with the appointment of marketing agents.
Announcing the public tender for Goodluck Garden on Thursday, Knight Frank said the freehold site could generate 669 new units based on its maximum gross floor area of 504,182 sq ft, assuming an average size of 753 sq ft, and gross plot ratio of 1.4.
Goodluck Garden now comprises eight blocks of 208 residential units and two commercial shops.
Including an estimated development charge of S$63.2 million payable for intensified use of the site, the land rate works out to S$1,216 per square foot per plot ratio (psf ppr).
Marketing agent Knight Frank said the condominium is nestled within a private residential enclave, surrounded by landed homes and private condominiums such as The Beverly, Nottinghill Suites, The Creek @ Bukit and the soon-to-be launched Daintree Residence.
It is a few minutes' walk from Beauty World MRT station, as well as a host of amenities along Upper Bukit Timah Road, including Beauty World Centre and Bukit Timah Plaza.
The site is a five-minute drive to the Jurong Lake District and a 25-minute drive to the Central Business District.
Its tender closes on March 7.
A total of 27 residential sites and three commercial/industrial sites have been sold in collective sales last year for close to S$8.7 billion, compared to S$1 billion from three residential sites in 2016. So far this year, two residential collective sale sites have been sold for S$943.6 million.
But since December, six collective sale tenders have closed without concluding a sale. Another two tenders closed on Thursday and their outcome is not revealed yet.
According to laws governing collective sales, the owners may enter into a private treaty contract with a buyer within 10 weeks from the close of the public tender.
The rising failure rate for collective sales, however, has not doused the enthusiasm of property owners looking to monetise their ageing properties.
John See Toh, the CSC secretary for Far Horizon Gardens, said the committee is hopeful of crossing the 80 per cent mandated approval from owners to launch the public tender for the residential site in the second half of this year.
The 35-year-old leasehold project in Ang Mo Kio now houses 270 residential units and two shops on a total gross floor area of 430,000 sq ft. It is near the Yio Chu Kang MRT station, as well as Lentor station on the upcoming Thomson-East Coast Line.
Meanwhile, owners of Golden Mile Complex and Golden Wall Centre have appointed Edmund Tie & Company as their marketing agent. Neither development has set a reserve or asking price.
The 16-storey Golden Mile Complex in Beach Road, which has 50 years left on its lease, now comprises 411 shops, 226 offices and 68 residential units. Its last attempted collective sale was in 2010.
Golden Wall Centre, a 36-year-old freehold office-cum-retail development, sits on 2,252 sq m of land zoned for commercial use. This is its second en bloc attempt.
The owners of Shenton House have appointed Colliers International to market the property, which has 50 years left on its lease.
Its area of 3,377 sq m can be built up to a maximum gross plot ratio of 11.7, or a GFA of 425,292 sq ft; its GFA is now 301,661 sq ft.