Goodluck Garden jumps on collective sale bandwagon

There appears to be no lack of projects looking to jump on the collective sale bandwagon, even though more public tenders have closed without concluding a sale.

Goodluck Garden, a condominium development in Toh Tuck Road, has launched a tender with a reserve price of $550 million.

It is the fourth collective sale launch this week after Eunos Mansion, Makeway View and commercial property ICB Shopping Centre.

Others that have kick-started the collective sale process include Far Horizon Gardens, which just formed its collective sale committee (CSC) and is in the midst of short-listing marketing agents.

Commercial properties Golden Mile Complex, Golden Wall Centre and Shenton House have appointed marketing agents.

Announcing the public tender for Goodluck Garden yesterday, marketing agent 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.

The development comprises eight blocks of 208 residential units and two commercial shops.

Including an estimated development charge of $63.2 million payable for intensified use of the site, the land rate works out to $1,216 per sq ft per plot ratio (psf ppr). The tender will close on March 7.

A total of 27 residential and three commercial/industrial sites have been sold in collective sales for close to $8.7 billion last year, compared with $1 billion from three residential sites in 2016.

Since last month, six collective sale tenders have closed without concluding a sale. Another two tenders closed yesterday.

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.

Mr John See Toh, the CSC secretary for Far Horizon Gardens in Ang Mo Kio, said it is hopeful of crossing the 80 per cent mandated approval from owners.

The 35-year-old leasehold project has 270 residential units and two shops with a total gross floor area of 430,000 sq ft. It is near Yio Chu Kang MRT station, as well as Lentor station on the upcoming Thomson-East Coast Line.

Meanwhile, the 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.

Shenton House owners have appointed Colliers International to market the property.