Disclaimer






"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.

Outdated RP


If owners were to receive the RP in their accounts tomorrow, they would not be able to buy a similar sized replacement unit in the near vicinity. There's the hassle of moving, the legal fees, the stamp duty, the renovation cost, the spectre of 560 potential owners entering the market at the same time driving up resale values and COVs in the area,... even if you sign today; you won't see a penny until 2013 at the earliest. Mass market properties in Tampines  are being snapped up like there's no tomorrow. Waterfront Waves subsales have breached the $1000psf mark. 

TC Round 1: RP mooted in Dec 2005 - sold Mar 2007 : 15 months unchanged in a rising market.
TC Round 2: RP mooted in Jul 2011 - now Jul 2012 : 12 months unchanged in a rising market.
At this rate the RP will be 18 months old without a revisit by the end of the year. 

Any Expression of Interest now will only serve to justify keeping the RP as it is.  
Any EOI now will cut the legs off any legitimate tender exercise 9 months down the road.
Any EOI now could produce our ballpark RP less 20% - prompting a likely convening of an EGM to lower the RP; or set the murky mechanism for lowering the RP in the CSA into action.
An EOI exercise should never be done simply to 'persuade' reluctant owners to sign.
.
Would the name of the interested party(s) (should there be any) be disclosed to the owners? Probably not since the developer-buyer would be a public-listed company and SGX rules prohibit any such disclosure. So it might all be as transparent as a cardboard box.

Any way you look at it, going for EOI now is not a wise move.


2 comments:

  1. Anonymous23 July, 2012

    from some sources, en-bloc of former HUDC at Eunos has move much faster than TC.
    Their area is smaller that TC. Yet RP is much higher.
    I believe that the if the SC of TC had heeded the advice to put up a much higher RP, there would be much more who had signed up...

    For you information, one of the Eunosville unit is advertised to sell at a cool $1.4Mil!! ($833.83psf)
    Very close to TC en-bloc RP..???

    ReplyDelete
  2. Recent browsing on Property Guru site for property in TC, not less than 40 TC owners are willing to sell their unit for less than $1.2ml. I don't understand why these owners are so desperate to dispose of their unit at lower than the reserved price.Have they no confident that TC enbloc will succeed.

    ReplyDelete