"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."
Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu
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.

$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.
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.


  1. Got a better idea!En-bloc TC at 1.4m(or more) and then buy 2 HUDC's in Hougang(ave 2 & 7)for around 700k each.Then have 3400 sq ft of space instead of 1700 sq ft(now).
    Fantastic don't you think?

  2. And are there 560 spare units in these old HUDCs?
    Or 1120 if we all want to buy 2?

    If even just 10 people go to view one such unit what do you think happens to the price? Would the owner sell for 700k if he knew that, say, 100 hungry ex-Tampines Courters were hunting in his estate? They may be $700 now, but they will be equal to the en bloc price when the time comes to buy. Time does not stand still, and prices do not freeze in the meantime.

    The suggestion is imbecilic, aimed at kindergarteners, surely.

    The pro-en bloc group should really think again if they are going to throw the same garbage at us a SECOND time! Our last en bloc marketing agent even suggested old estates THAT HIS OWN COMPANY WAS IN THE PROCESS OF EN BLOCkING as suitable alternatives!!!

    I really hope you are not on the committee.

  3. Suggestion is logical and practical. I bought two units at TC last year after my unit in Farrer Court got enbloc. Bought the first one for $520K and the second unit for only $485K. Both are walk-ups. Do not belittle other people suggestions just because you are anti enbloc.

    TC Owner.

  4. Farrer Court was sold in Aug 2007. And each owner got over $2 mil each, a far cry from the $695k (before expenses) then or the $1.2m now we are promised.

    You waited 2 years to buy into TC. Perhaps you are not even resident in TC, perhaps you have a HDB somewhere and bought into TC in the hope of making a double en bloc flip. So long as you make a reasonable profit, any fairytale scenario you can peddle to single owners is kosher with you.

    If TC owners signed for $1.2m now and waited 2 years for the sale to go through, and then another 2 years to buy into the dwindling stock of HUDCs, then they are delusional if they think the 2014 HUDC price will be stuck at the 2010 level of $700k.

    Unless of course, the SC can guarantee another market crash, another sub-prime crises in the world. Sign now and wait for a crash to happen! And let's not everyone rush at once for the odd unit on sale on any given weekend.

    An en bloc can only be about FULL REPLACEMENT COST IN A NEW DEVELOPMENT and Developer-Buyers know exactly what their potential selling price will be when they buy up the land. They have a business proposal all ready made out.. and it's around $1000 psf at the moment.

    So far I have not heard of any serious market research done by any would be committee member - just talk, talk and more talk based on nothing but hot air.

    I am sorry I seem to have a short fuse at the moment. I usually can keep my 'suffer no fools' streak under wraps and I was JUST about to delete that jibe. when your comment came in and it would make no sense to delete it after that.

    1. Anonymous24 June, 2014

      You're right. It's now June 2014......the 2 HUDC estates in Hougang Ave 2 and Ave 7 HUDC estates have just been legally privatized. Prices transacted prior to legal privatization were circa $950K to $1.065million. No units changed hands over the past 13 months in the 286 unit Hougang Ave 7 HUDC estate. The owners value the space, there's no interest or talk of selling en bloc after all the lessons learnt. They won't sell it for less than what it's worth. But why would you want to swap TC for a less accessible equivalent estate in Hougang Ave 7? The nearest MRT is about 1 km away and they were unpopular in the 1980s because of the remote location (4 unsold maisonette units in Block 349 are still owned by HDB today). HDB demolished two or three blocks of unsold maisonettes and sold the land to a developer in the early 1990s who built the Evergreen Park condo.

  5. everyone have their opinion on enbloc.. some want to sell and cash in, some want a full replacement, some want to wait to fetch a better price... look at farrer court. if you guys work together instead of arguing, you just might be farrer court 2. Learn from the success of others.

  6. What is this $1.2m going around for signatures? Even I, an investor and never lived in TC, think it is MORONIC. Wake up!! Today's price is $1.7m, and Dev's out there WILL come in at that price.

    Lift the bar higher and make the big boys jump higher, not skip over! Don't be shy to squeeze them. If no fish bites, then dunk the enbloc.

    But if a crisis comes and can't hold, then you shouldn't have invested in TC in the first place, and deserve to lose money.


  7. 1.2m, 1.7m 2m... have anyone got a calculation how this was derived? What is the apportionment method? Anyone worked out how much of TC's land is worth.

    w/o all this, all this is just empty talk.

  8. I would like to share one of the computation:

    Site Area of TC = 702,157 sqft
    Plot Ratio = 2.8
    Total Area = 702,157 sqft * 2.8 = 1,966,039 sqft
    Area each unit owns = 1,966,039 / 560 = 3,510 sqft
    Each unit owns ($) = 3,510 sqft * $470 psf (Oct 2010 - lastest from URA) = $1,650,068

    TC should be 'enbloc' at min $1.65M per unit.

    Why are we selling at 1.2M?

  9. how can you compare TC and Farrer court?
    new condos around farrer court is selling in excess of $2K psf while those around TC is selling at half that.

  10. I have made a stab at the computation, but it is on a spreadsheet I will not share as I want to see how the next SC do their calculations :p.

    The apportionment method is an entirely different matter. TC is lucky in that we are a simple estate with equal share values with only a slight variance in size.

  11. At the end of the day. if TC goes en bloc, there will be very little chance of many of us ever being able to afford a 1700sq ft private apartment ever again.

    The gentleman who bought up 2 units in Tc did so because of great timing; he had made a substantial amount of money from en bloc and this coincided with our estate's failure at the STB and the subsequent avalanche of units put up for sale in 2009 -2010. over 120 units changed hands during this period.

    That has now dried up and we are back to a normal monthly turnover of around 2-3 units/month. This is about the same for any other HUDC and not ebough to mop up the homeless from TC should we all sell at the same time.

    The only guarantee of a 1700sqft private apartment is a 1-4-1-exchange.

  12. For goodness sake...it's only a private apartment IN NAME only! Stop living in your la la world thinking that you live in a condo. TC has no lift upgrading, no rain shelters, no facilites. Have you seen the amount of foreigner students clustering in 1 unit?? Have you really take a look at the floor tiles in public area?
    I rather live in a decent 5 rooms flat with upgraded amenities than here.

    FYI, I'm a TCer

  13. And what is in a name? A lot, actually. The differences between Private and HDB are many, as you should know.

    Private owners can buy and sell whenever they want and to whomever they like. They can own multiple private properties and they are co-owners of all the common property in the estate. In an en bloc sale, that common property, along with the increased plot ratio doubles your private strata area (something many eager to enbloc fail to fully comprehend)

    HDB owners have a 5 year minimum occupation period and have race restrictions on who they can sell to. HDB owners can no longer buy private property; if they do, they must sell their HDB flat within 6 months. They own nothing outside their front door as all common property belongs to HDB only. Any increase in plot ratio will be enjoyed by the HDB alone.

    There are many, many other restrictions/differences.

    TC does not have condo facilities, and I have never said we had or even lamented the lack of them! We have low monthly maintenance which is infinitely preferable.

    If you suspect overcrowding in a unit please report it to the MC who will pass the information on to the URA who will then deal with the matter.

    Private properties have rules regarding the maximum number of tenants etc and it is the URA which enforces those rules.

    TC does not have the monopoly on inconsiderate owners - read the papers and you will be surprised what higher end 'condos' get up to! Residents defecating in the pool, soiled sanitary wear thrown onto balconies, boyfriends parking overnight as if they were residents, tenants BBQing on their balconies.....
    HDBs have their horror stories too!

    There is no shortage of suitable 5 room HDBs in the Tampines area, and since you cannot stand the sight of a few old tiles and hanker after all things HDB, including the smaller space and loss of strata title, then I suggest you put right the situation immediately and move!

    BTW; 5 room monthly conservancy charges run from $66 to $78.
    Parking you car is $65 (uncovered) or $90(covered). So be careful what you buy, or you could end up paying $20 more per month than those staying in TC!