Oct 30, 2010

CARDIFF COURT



Cardiff Court, a huge D-19 site located near Lorong Chuan and Serangoon MRT station, will be launched for collective sale on Tuesday.
The property is expected to fetch around S$25 million.
This works out to owners getting between S$700,000 and S$1.45 million, depending on the size of their unit.
The 43,490.9 square feet site has 72 years of its lease left, and is zoned for Residential use.
The site has a gross plot ratio of 1.4 and an allowable height of up to 5 storeys.
Meanwhile, its potential gross floor area is 60,887.2 square feet.
This means that the new condominium development could have about 96 apartments with each unit measuring about 600 square feet.
The new condo project is expected to fetch about S$1,100 per square foot when it is launched.
The Tender will close on the 18th of November.
Source : Channel NewsAsia – 25 Oct 2010

So very few 99 year leashold properties have been sold en bloc; I believe only 7 to date:
  • Grangeford Apt (Aug 2007)
  • Farrer Court (Jun 2007)
  • Gillman Heights (Feb 2007)
  • Waterfront View (May 2006)
  • A 144 unit property in Newton (Mar 2006)
  • A 186 unit property in River Valley (Mar 2006)
  • Amberville (Jan 2006)
This makes Cardiff Court's en bloc attempt all the more interesting. The records show that CC was supposedly sold in 2007 for $13.5 million - but I don't know what happened after that, because here it is up for sale again. The records show unit sale activity from 2009 onwards.

Oct 26, 2010

$1m for flat? Not interested

$1m for flat? Not interested
By Desmond Ng

WHAT would you say to a whopping $850,000 profit on the sale of your flat?
Thanks but no thanks, say some owners of the Shunfu Road flats.

This quiet estate off Thomson Road recently hit the headlines when an HUDC flat in Block 315 was sold for a jaw-dropping $1.1 million in July, the highest ever transacted in Bishan for an HDB project. The cash-over-valuation (COV) of about $200,000 is believed to be the highest ever paid. The unit was valued at about $900,000.

That sky-high price prompted another owner to put his unit on sale at an even higher price of $1.28 million.The two units are 1,668 sq ft each with three bedrooms. ERA senior marketing director Sandy Lim was involved in marketing both of them.

The estate, at blocks 314 to 319, is set to be privatised by the end of the year.

Surprised
Most of the residents The New Paper spoke to were surprised that the units breached the $1 million mark. But it seems that amount is still not good enough for them to even consider selling.
Only one of the 10 residents interviewed said he would consider selling at the recently transacted price. Others, like Ms Soh G S, would rather hold on to their homes. The housewife, in her 50s, said she first heard about the $1.1 million sale a few months ago.

She said: "I thought it was just a rumour. But when I found out that it was true, I was surprised that (the unit) got such a high price."

Even during the 1997 peak, prices in the estate never went beyond $800,000, she said.

A check on HDB's website showed that transacted prices for HUDC units in Shunfu ranged from $720,000 last October to $1.1 million last month.Ms Soh added that her family bought their unit from HDB for about $250,000 in 1985. They are the first owners.If she does sell it for $1.1 million, her gross profit would be about $850,000. She said: "If I sell at that price, I would not be able to find a replacement unit of this size and in this location." She likes the area for its amenities - it's a brisk five-minute walk to Marymount MRT station, a wet market/food centre and a 15-minute drive to town.

Ms Soh reckoned that she'd have to pay about $1.7 million for a condo unit of similar size in the area.
"It'll make sense for someone here to sell and downgrade to a smaller unit," she added.

Another original owner, retiree James Sek, said he'll only consider offers of at least $1.5 million.
He explained: "This estate can potentially be sold en bloc in the future. I think I can get a better price then."

Civil servant Mark Tan said that he's now calculating if it's worth selling his unit and buying a smaller flat elsewhere. But he thinks that the Government's cooling measures introduced in August will make it trickier to hit the $1 million mark now. His parents bought their unit for about $250,000.
Said the 48-year-old: "It's indeed tempting. If we can sell in excess of $1.2 million, we'll probably do so."This will unlock some cash for my parents, who are retired."

HUDC flats were built in the 1970s and 1980s as an option for middle-income Singaporean families.
There are 18 HUDC estates here. All, except Braddell View, have been privatised or been identified for privatisation, reported The Straits Times on Wednesday.

Property agent Ms Lim said that when she submitted the paperwork for the $1.1 million unit, a suspicious HDB officer contacted her to verify the information. "The HDB officer called to ask me if I did indeed sell the unit for over $1 million. It was quite funny," she said.

Ms Lim said that response to the sale was very good, with 90 people viewing in just three weeks.
She took about three weeks to close the deal, which is the norm for a popular HDB unit.
The $1.1 million unit was owned by an elderly couple who were the second owners, she said.
They sold this unit - which was left vacant for a few years - to live with their children.
The buyers, a Singaporean couple, are downgrading from their landed property, MsLim said.
The buyers and sellers declined to be interviewed for this article.

Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said the values in Bishan have gone up partly because of the opening of the MRT's Circle Line.
He said: "But to receive over $1 million for an old project with a shorter lease boggles the mind."

Mr Tan was not surprised that residents there are reluctant to sell because of the high cost of getting a replacement home.
"This is unless they own more than one property," he added.
The New Paper - Oct 11, 2010

My Opinion:
The people who buy such units are buying because of size. This particular couple are reported to be downgrading from a landed property so I surmise they must have been attracted to the generous proportions of the rooms in HUDCs. The recent cooling measures by the government will not have much effect on this group of people - as they are typically buying for occupation rather than rental. The cooling measures will affect those who are buying a second unit for rental purposes - and those units are typically 1000sqft or less.

So can TC reach such levels? of course! Shunfu is older and not even privatised. There are pros and cons to every estate, it is no better than ours. Watch and wait. As the number of large flats dwindle, TC will become ever more attractive.

Rethink, revamp... RESELL

Rethink, revamp... RESELL
By Koh Hui Theng
THE offer price to buy the development en bloc was below expectations.
So the developer, Melodies Limited, which owns Cassia View, decided to refurbish the place and then resell each unit individually.
The units, which had been rented out, are all owned by the developer.
The company is now expecting to get S$15 million more from the sale of the units.
And with 80 per cent of the units sold so far, the developer looks to be on target.
It started when the 20-storey, 72-unit freehold project on Guillemard Road was put on the market last year.
At that time, it attracted a S$70 million bid, or about S$780 per sq ft (psf) of strata area.
Melodies felt that the offer price was too low.
"We were not pleased with the response as we felt the property could fetch a higher rate," a company spokesman said.
So Melodies decided to spruce up the apartments and sell them individually.
The S$3 million renovation bill it chalked up included refitting kitchens with new tiles, cabinets and appliances.
Bathroom fixtures from high-end brands were installed, doors were changed and bedroom parquet floors were polished.
External walls received a new coat of paint.
Mr Liang Thow Ming, the executive director and head of residential services of Credo Real Estate, which is marketing Cassia View, said: "It's almost a total makeover. The refurbishment was undertaken as it adds more value to the property."
Renovations started in May.
The New Paper  Oct 20, 2010

Oct 22, 2010

MARINE POINT

CapitaLand to acquire Marine Point - CNA 27 Jan 2011
SINGAPORE : CapitaLand has said it will acquire enbloc property Marine Point for S$100.68 million.

The latest acquisition brings CapitaLand's pipeline of homes in Singapore to 2,600 units altogether.

Marine Point, located in the Marine Parade neighbourhood, will be acquired at S$1,056 per square foot per plot ratio. This is inclusive of a development charge of S$12.8 million, said CapitaLand in a statement.

CapitaLand plans to redevelop Marine Point into a distinctive condominium with 150 units, comprising one-bedroom plus study and two-bedroom apartments.

Marine Point sits on a 4,755 square metre (51,185 square feet) freehold site with a maximum gross floor area of 9,986 square metres (107,488 square feet).

Currently, there are 32 units in the existing development.

The Marine Point transaction is expected to take place in third quarter of this year, subject to approval by the Strata Titles Board.

CapitaLand said it will maximise the height of the new development to about 19 storeys.

Wong Heang Fine, chief executive officer of CapitaLand Residential Singapore, said: "This will give the majority of the apartments a good view of the surrounding skyline and the sea. We plan to have the new development ready for launch in the first half of 2012.

He expects strong response from young families and professionals who have grown up in the area.

The Marine Point site is situated along Marine Parade Road, opposite nearby amenities in the Marine Parade Town Centre and Parkway Parade shopping mall.

A range of retail, F&B and entertainment facilities, as well as the popular East Coast Park, are located just minutes away.

The site is near well-known schools such as Tao Nan School, CHIJ (Katong) Primary, Tanjong Katong Girls' School, Ngee Ann Primary School, Victoria School and Victoria Junior College.

It is also easily accessible by major expressways such as East Coast Parkway as well as numerous bus services.



Marine Point up for collective sale with $110m price tag
Business Times - 21 Oct 2010

The indicative price for the 18-storey block works out to $1,116 per square foot per plot ratio (psf ppr), including an estimated development charge of $10 million.

The project has a site area of 51,185 sq ft and a 2.1 gross plot ratio, giving a maximum gross floor area of 107,489 sq ft.

Marine Point up for collective sale

Marine Point, a freehold 18-storey residential block along Marine Parade Road, is up for collective sale.
Covering an area of more than 50,000 square feet, the site can be re-developed into a 25 storey block to accommodate about 100 apartments averaging 1,000 square feet each.
ERA, which is handling the collective sale, said more than 80 per cent of the owners by share value and strata floor area have signed the collective agreement.
The owners are looking at a collective indicative price of about S$110 million; or about $1,030 per square foot per plot ratio.
An estimated development charge of S$10 million is payable.
The tender for Marine Point closes on November 18, 2010 at 3:30pm.
Source : Channel NewsAsia – 20 Oct 2010

Oct 21, 2010

Very, very interesting...



 ...when the profit motive gets unmoored from the purpose motive, then bad things happen; unethical things.

Oct 20, 2010

Words of wisdom from a CHINA newspaper


En bloc estates: no harmony, no happiness, no security.

Oct 8, 2010

The Immorality of En Bloc

En bloc is always talked about in terms of dollars and cents. You can find on this  blog endless circular discussions about reserve price, selling price, cost of replacement etc. I have tried every angle to persuade people that en bloc is not what it seems. It is not a straightforward process ring fenced by solid rules. It is not a guaranteed windfall. The sale committee members are not all selfless volunteers working for the greater good. The developer-buyer does not make a paltry 10% profit. It is not all over in a few months. All owners are not happy with the results. There are so many different angles from which en bloc can be attacked and I have tried them all.

And yet,  the single most important reservation I have with en bloc has nothing whatsoever to do with price. You see, in my opinion, en bloc is essentially, at it's very heart,  it's very core, deeply immoral.

We are taught from young not to do harm. Civil society depends on personal restraint and a respect for one another's person and belongings.

And yet, harm is what is done when a large group of owners band together to force their unwilling neighbours out of their homes. Group dynamics is such that no individual feels guilt or  shame in selling that which does not belong to them, stuffing money into unhappy owners' bank accounts and telling them to go find somewhere else to stay. People feel no compunction whatsoever in trampling over others in order to reap some monetary gain for themselves.

Those who instigate en bloc cannot fathom this viewpoint since it is government sanctioned and therefore requires no further thought. The Government has taken any stink of impropriety away and replaced it with the smell of money. 

It may be legal, but it is still immoral nonetheless.

The old pro-en bloc argument comparing a general election with en bloc  is a flawed . In a general election, one is voting for a third party and win or lose, there is no actual loss or gain to the voter. In an en bloc vote - the loser (20%) actually loses his most valuable possession, his home. This is a real loss and not quantifiable in monetary terms. The winner tramples over the minority's aspirations, disrupts financial planning, cashes out on a nest egg too early for some, in order to reach his own financial reward. The minority owner, by doing nothing, cannot be accused of acting selfishly for wanting to stay in the home he purchased before his proprietary rights were curtailed, and lived in for perhaps many years. It is not selfish of him to try and keep his possessions, to protect what is his and not agree to enrich his neighbour at his own expense.

To take what is not yours is morally wrong - no matter what financial restitution you make. It is wrong on first principles.

Oct 6, 2010

Shunfu Individual unit sells for $1.1m



Shunfu estate is older than TC (Phase 1, TC is Phase III), is unprivatised, and has no facilities.