Faber Garden En Bloc Tender Result

Faber Garden En Bloc Tender Result 2018

The spirits in Singapore’s billion-dollar en bloc sale market is dented after major en bloc sale attempts with more than $1 billion reserve price closed without attracting any bids.

Faber Garden who’s en bloc sale tender with $1.18 billion asking price closed in later half of May without attracting any interest from developers.

It is one of the contenders for largest en bloc sale this year if they had been successful.

Colliers International in its recently released data on 9th September revealed that this year 47 en bloc sale tenders closed without attracting any buyer. Tricia Song, Head of Research for the firm in Singapore added that 19 of these en bloc sales had their tender closing dates after July 6.

Alan Cheong who is Senior Director at Savills Research attributed this disinterest among developers on the new cooling measures.

He said that the priority for most developers is to clear their existing inventory rather than add to their land bank. But he is hopeful of the market picking up if there a couple of en bloc sales materializes in the coming days.

As per reports that have appeared in the media Collective Sale Committee of Faber Garden is already exploring its options and may come up with a new tender soon.

The collective sale agreement for this property is valid till March 2019.

Not only Faber Garden didn’t taste Success, the 99-year leasehold condo Horizon Towers located along Leonie Hill which was launched with an asking price of $1.1 billion a day before the cooling measures came into effect on 6th July saw its tender close on 12th Sep without any bids.

Regional Director at JLL, Mr Tan Hong Boon who were the marketing agents for Horizon Towers which has 211 units said that the close of tender without a single bid wasn’t expected.

He said that the market had started showing signs of slowing down even before the cooling measures were announced and with the Hungry Ghost Festival having ended recently most developers are observing the market closely and will measure the success of new launches in terms of volumes and prices for those.

He added that as far as Horizon Towers is concerned they have now pinned their hopes on a private treaty over the next 10 weeks. If that doesn’t metalize as well they would work towards launching a fresh tender.

Some property analysts believe that lack of interest among developers may also be a result of the new rule that mandates buyers to submit a pre-application feasibility study with the Land Transport Authority.

The aim behind this study is to assess any new development’s impact on traffic in the neighbourhood and also new proposals towards traffic management.

All en bloc sale project that were sealed since Nov 2017 have to obtain LTA clearance.

According to the new rules developers who are working on projects with 700 units or more yields have to work on Transport Impact Assessment report.

Upper Thomson Road’s Faber Garden which houses 236 units at the moment could have yielded 1,150 plus units upon redevelopment keeping 70 sq m as the average.

The site covers an area of 544,738 sq ft and is located in Angklong Lane. It has Good Class Bungalows in Windsor Park and Central Nature Reserve in the vicinity apart from other private condos. The site has 1.6 plot ratio and 12 storey height restriction.

Developers can exercise maximum out of its 871,581 sq ft permitted GFA.

Developers would also need to pay $106.7 million as development charges which is inclusive of $52.8 million payable towards intensification of land use. Taking these into account the land rate translates to $1,414 psf ppr.

Apart from hurting en bloc sales the cooling measures have also assed lot of uncertainty in the market. Acquisition costs for land have gone up sharply.

Developers now have to pay 30% ABSD on land which has a 25% remissible component if the developer is able to sell all units within 5 years of the site acquisition.

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