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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.

Vice-Chairman

The Vice-chairman of the Sale Committee is making an extraordinary effort to raise awareness amongst the SPs that the reserve price is set too low. He is going door-to-door handing out a letter outlining his concerns and urging SPs to make their collective reservations known to the marketing agent. They can do this either through the Tampines Court Facebook page or email direct to the SC.

He believes "the RP is set too low for the following reasons:
  1. The reserve price originally calculated by Huttons was SGD XXXMN on 14/11/2015. But after shortlisting as Marketing Agent, they reduced it to SGD XXYMN within a month. This was not justified.
  2. The basis of reserve price is the "most approximate value of any future development in Tampines Court by the developer buying it. Huttons has assumed selling price of the new development at SGD1100psf whereas based on current prices of similar projects in and around Tampines/comparable locations the selling price should be at least SGD1150psf and not SGD1100. On this basis, the reserve price will in crease by at least SGD 90 million.
  3. The estimated sale proceeds of any unit in enbloc sale should not be compared with present selling price of an unit in Tampines Court but with the potential commercial value of the new development and profits to developer from additional built up area based on 2.8 times the existing land area - based on this, each unit should bet minimum SGD1.XXmn"

Well, I applaud this SC member for this tireless and thankless endeavour, he is taking his 'Duty of Conscientiousness' very seriously. It is also a relief to know someone on the committee understands these matters. 

I hope the rest of the committee is behind him and not just sitting on their hands. 

5 comments:

  1. Anonymous28 July, 2016

    Here's my simple take for consideration:

    1. Reserve Price set too low- Yes, maybe but then again it depends on when the enbloc process takes place e.g. SG's economic cycle etc. For those who have made the effort of diligently working out the RP, why keep to the last minute?. Drive the enbloc, be in the Sales Committee. Money is Never Enough!

    2. Not the right time to sell - It's Never a "right time" to sell. If one is selling high, one should be prepared to buy high too unless downgrading. SPs who have bought Tampines Court at high price, must have also sold their previous units high. Win sometime, lose sometime lah

    3. Aging Infrastructure: Enbloc should be a consideration unless SPs are prepared to pay more to fix lifts, leakages, electrical systems etc costing millions of dollars. We will then reach a point when it doesn't make financial sense to keep paying more and more for the estate upkeep.

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    1. Anonymous30 July, 2016

      Do the maths:our Enbloc price can't match Resale price of other aging HUDC apts that I'm considering.Talk about depreciating aging infrastructure.You admit that the RP is low,however property prices are still high today.If the MA can assure me of a 1700sq ft apt with all the positive attributes of Tampines Court ie proximity to market,retail,MRT,regional centre, gardens and adequately spaced Blocks for $1M or less then i'll consider.Don't gamble on my behalf please

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  2. I think just need to wait and see the CSA signing results.

    I strongly believe that they cannot reach 80% with this low RP.

    The SC and MA not even provided alternative housing for the SPs. With this RP, SPs can only downsize to HDB or smaller old Condo around this area.

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  3. Anonymous31 July, 2016

    That the MA revised the RP drastically soon after securing the account,and got away with it,is to put it mildly;sad.I do not recall any major adverse event in S'pore at that time to justify it.I suggest they refer to a plethora of data from URA,SRX,Squarefoot,NUS etc and press releases n comments from Ministers,MAS officials in explaining this downward revision.Any decision to change the RP must be backed by data.Otherwise it will be perceived as a ruse to achieve 80%.Especially so after declaring that a higher RP would render this 'Enbloc Unworkable'- Not my words mind you.
    Enbloc is about putting your THRUST in a competent, professional team that have the RESIDENTS interest foremost.When this is met,then the price will be unwavering,fair and satisfactory.

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    1. Totally agree.

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