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"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

Three more for the chop

Three HUDC estates in Hougang, Potong Pasir designated for privatisation

The government has identified three HUDC estates for privatisation.
The estates are located at Hougang North Neighbourhood 3, Hougang North Neighbourhood 7, and Potong Pasir.
The Ministry of National Development (MND) said the three estates comprise a total of 797 of apartments and maisonettes.
Real estate agents said the news could affect prices of these properties, which may rise 5 to 7 per cent.
“With privatisation, everyone will be happy (because) the price will be higher if we intend to sell,’ said Steven Tan. The HUDC estate at Hougang Avenue 7 which he’s been living in has been put up for privatisation.
Property agents said prices could inch up overnight.
Recently transacted prices in the three estates range from S$620,000 to S$735,000.
“I won’t be surprise some will say if I were to sell you the unit, then I am giving up my opportunity to cash in more if this development go en bloc. We’ve heard of developments where once it is privatised, the prices there sometimes rocket by S$100,000,” said Chris Koh, director of Dennis Wee Group.
Industry players said the en bloc potential for these HUDC estates is good because they are located in mature estates with more developed infrastructure and amenities.
The privatisation process could take up to two-and-a-half years.
But it will need support from three quarters of the residents.
Helen Lee, Protem Committee Member of Hougang Avenue 7 HUDC estate said: “The last time we did a survey in early 2009, more than 80 per cent of the residents were actually in favour of the privatisation. I think it shouldn’t be a problem getting the 75 per cent vote.”
The residents of each estate will have to form a protem committee comprising resident representatives to act on their behalf.
One stumbling block could be the privatisation cost, which include legal and survey cost, as well as cost of land transfer.
The Ministry of National Development (MND) will cap the cost of privatisation at $30,000 per flat for the three newly-designated estates at Hougang and Potong Pasir.
The MND said this is a concession to enable HUDC lessees to fulfil their aspirations to enhance their assets.
The concession will also apply to the Serangoon North HUDC estate, which is in the process of obtaining support for privatisation.
The capping of privatisation cost at $30,000 is only valid for three years, starting from 2 August 2010.
Thereafter, MND said the cost of privatisation will be adjusted to take into consideration the prevailing redevelopment potential of the land.
Observers said privatisation means flat owners will no longer be bound by some public housing rules like sub-letting, and they can sell or rent their homes to anyone.
Source : Channel NewsAsia – 30 Jul 2010

If these HUDC owners really know what is best for them, and their unit is their one and only home - then they should stay under the HDB umbrella.

If they go for privatisation, they will be $30k poorer,  locked out of the lift upgrading programme and struggle to maintain the estate on low maintenance fees, as owners will refuse to pay private rates yet expect private standards.  Owners seldom grasp the fact that Town Councils have the benefit of scale and can tap government contractors. When you are on your own, it's a different world altogether.

Traveling down the 'privatisation - collective sale' path means they will eventually end up in a smaller HDB anyway and hardly any richer, if at all.  I would love to know just how many ex-Minton, Waterview, Amberville, and Gillman owners ended up in HDB and how many went on to buy  bigger homes or better private properties. 

Plus the awful pitched battles that will surely follow between those who value their homes and those that want to cash out.

The Government is not doing them a favour; they ultimately want to see HUDC land redeveloped and they don't give a toss about the owners. "Move to Woodlands" is the answer you get from those supposedly elected to manage your concerns, and my personal favourite and inspiration for my logo "if 80% want to jump off a cliff then the 20% have no choice but to follow". 






4 comments:

  1. Anonymous31 July, 2010

    What is best for hudc is pay the privatising cost of 30k then go en-bloc.
    Instead of about $730,000 only,one can get 1.2 million.This really make sense.
    What you guys think?

    ReplyDelete
  2. farrer court is a success story of hudc tune private that made good... location and timing is critical... not to mention an effective minority.

    ReplyDelete
  3. My experience is that you guys check the sinking fund that they are supposed to transfer to the estate. Just remember don’t be fooled and do you maths. The estate sinking funds are an accumulation of reserved starting day one.
    Moreover the $30k that they are going to collect are much much more than what they are going to return to the estate sinking fund.
    Get them to present a clear chronological picture what they are returning.
    Good luck!

    ReplyDelete
  4. I agree. The Tampines Court elected MC spent the first few years after privatisation trying to recoup the missing millions all to no avail.

    It's the protem MC that you need to look out for - they are the ones that can make a hash of things.

    ReplyDelete