Faber Garden to make second attempt at collective sale

The collective sale market has enjoyed a year and more of bustling activity but things may be slowing down as more sites, albeit usually the mega ones, are finding it harder to seal deals.

Some properties are however still holding on to the possibility of making successful sales.

Faber Garden in District 20 try to launch for the second time in 6 months

Faber Garden.

Faber Garden is relaunching their collective sale exercise once more with a reserve price of $1.18 billion. This reserve price is the same as it was when they first launched 6 months ago though that tender exercise had ended unsuccessfully.

The owners are however hopeful for their second attempt as there is no competing land supply for sale in the vicinity.

District 20 is also becoming increasingly popular with buyers with its proximity to the city centre, the upcoming new Thomson-East Coast MRT line, the collection of good schools in the district and the established dining and entertainment options in its midst.

Currently, the private residential development consists of 236 units and previously their marketing agent CBRE has mentioned a possible yield of 1,156 units.

Faber Garden.

But LTA has taken a measurement of the traffic impact assessment (TIA) and has confirmed that the site will only be able to support 900 units. This could affect the gross development value which may then lower bid prices.

Success of properties nearby boost confidence for owners

The Panorama, Ang Mo Kio. Picture: iProperty

The freehold Faber Garden is situated in Angklong lane, near the Central Nature Reservoir and also the Ang Mo Kio-Bishan Park.

The Bright HIll MRT station which is expected to open in 2021 is just a short walk away, with many other landed properties and good class bungalows nearby.

Schools in the district include Raffles Instituition, St. Nicholas Girls’ School, Ai Tong Primary School, Catholic High and Primary School.

Should the tender be successful this time around, each of the 233 owners stand to receive between $4.38 million and $6.75 million while the 3 commercial units will receive between $1.99 million and $4.83 million.

Though the site is valued at $1.16 billion, the difference between that and the $1.18 billion reserve price is slight. The condominium’s collective sale committee has hence decided not to to lower the reserve price as it may affect the 80% mandate required to launch a tender.

The public tender will end at 3pm on Oct 31.

See more: GCB built by first Housing Board chairman sold for $93.9 million