Farrer Court going Enbloc

Pine Grove 2nd Attempt at Enbloc Sale

$550k extra lure for second en-bloc attempt

Barely two months after owners at Pine Grove estate rejected a collective sale, a fresh attempt has been made to lure them, with an extra $550,000 per unit.

In February, only about 50 per cent of the 660 owners in the sprawling ex-HUDC estate in Ulu Pandan voted for the sale, which would have earned them up to $1.2 million each.

This was well short of the 80 per cent requirement.

Now, according to a letter circulated to Pine Grove residents by one home owner, property experts have estimated that the largest unit should not be priced lower than $1.75 million.

And unlike the previous attempt, the new initiative promises to secure 80 per cent support from home owners first before even proceeding to form a sales committee.

Usually, a group of residents will form a sales committee on their own, appoint a property consultant and then try to secure support from at least 80 per cent of owners.

A sales committee has not been formed yet and the letter writer declined to be interviewed.

Mr Karamjit Singh, managing director of Credo Real Estate, said he was not surprised by the 40 per cent spike in the expected minimum price. ‘It’s not impossible. In the past six months, property prices have jumped quite substantially,’ he said.

The February attempt to sell en bloc had met with resistance because many owners feared the hot property market would force them to downgrade to less spacious flats.

At around 1,750 sq ft, most units at the 99-year leasehold development are big by today’s standards.
Project manager K.K. Pang, 54, voted against the last attempted collective sale.

‘With the previous offer of $1.2 million, there was no way we could have bought a similarly spacious apartment in this area,’ he said.

The Sunday Times interviewed 12 home owners in Pine Grove and almost all said they would agree to the sale if offered $550,000 more. Many believe their units deserve the additional sum because of the size and the estate’s close proximity to the Dover MRT station and various other amenities.

However, property consultancy Knight Frank’s head of research, Mr Nicholas Mak, is sceptical that the second attempt will go through.

Said Mr Mak: ‘The weak response in the first round might have put off property consultants from getting involved in Pine Grove. Why put in so much effort and resources into a lame duck?’

He also warned that some collective sale initiatives are not genuine, but rather a ploy by some home owners to drive up the value of their unit.

DTZ Debenham Tie Leung, the firm engaged to handle the first collective sale, said it is not involved in the fresh initiative, but did not rule out the possibility of getting involved again if invited.

‘I’d say the second time is always easier. Sometimes during the first round, owners are not ready to give up their units. By the second round, they’d have had sufficient time to reconsider,’ said Ms Tang Wei Leng, DTZ’s director for investment advisory services.

Some owners, however, insist on staying put despite the prospect of making a huge profit.

Financial assistant Louissa Ang, 24, moved into her Pine Grove flat two years ago and spent $60,000 on renovations.

Said Ms Ang: ‘This is my matrimonial home and I just moved in. I don’t want to start searching for another house so soon.’
Source : Sunday Times – 13 May 2007