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."
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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.

MA SALES PITCH

What is our MA's sales pitch to TC owners like? Well, from my single rather confusing experience it goes something like this (not verbatim):

I asked to see the RLV.

He ignored the question and proceeded with the following patter:

'HDB is our references prices in Singapore, it sets the benchmark for all the condo prices that follow. 4 room, 5 room Bishan, alright, this is the medium price from HDB website, 3Q 2016, 4 room 561, 5 room is 730, Toa Payoh... the 2 enbloc Shunfu & Raintree, 178, Toa Payoh is higher 190, alright, so it's about 6% higher than Shunfu. The  HDB price also reflects the same; the 4 room flat is slightly higher, the 5 rm flat is about 200k lower. Ang Mo Kio is lower. Shunfu is our reference because Shunfu is their first enbloc attempt, alright. So Ang Mo Kio is about 18% lower for a 4 room , 5 room 10% lower, Sengkang is lower, alright, Hougang, alright, so this is Tampines; between 15% lower... so average about 25% lower than Shunfu and lower than ... So for the enbloc price payout, at $1.X m,  alright, is about 15.8% lower than these two. Furthermore, looking at the trend is actually in line with the estate pricing, location pricing in Singapore'


So, what is this method called? If it's not called residual land valuation? 

No, this is just called location, because in Singapore corporative prices..

Is it called location method or something?

No, for property pricing in Singapore, every estate there's a pricing. When HDB release the BTO prices, they always have a certain price, alright. recently they priced the '(The Avia?)' they priced on the very high side, over the other estates. So in Singapore, places like Chua Ch Kang the asking prices are so much lower. Alright. Queenstown area, Bukit Merah, that side, always command a higher price. Even reflected in the resale, higher than all the other estates. These are the the  estates Toa Payoh, Bishan, Bukit Merah, Science park area, these are the areas that command the higher price over places like Yishun, Woodlands, Chua Chu Kang, Bukit Batok, and east side from Sendkang, Bedok, Hougang, you can see from the prices here, right. Even Ang Mo Kio the pricing is lower that this Bishan.

So you are talking about the individual unit prices of in these estates.

No, this one is the average 

The average price of resale .. and what has that got to do with the Land price.

No, we are just giving you, showing you the trend whereby the estate prices compared to estate..

So are we selling land or individual units'

Same thing, because land is, when HDB release the new BTO project, alright, it's a piece of land there, in that housing estate itself. So when they build the flat there, alright, they sell the BTO flats there, compared to another land in another area, so the pricing is set by the government. 

But the government owns the land, so it's not buying land from anybody, so it can set it's price very low to suit Singaporeans because it is not in competition with developers for the land. So these prices are just HDB prices, these are base, rock bottom prices. 

Yes, the government show that each estate there is a certain pricing, 

These are rock bottom HDB prices, we are selling land to a developer and that is an entirely different kettle of fish.

I found the prattle rather confusing and it went on and on for another 5 minutes or so.. 

It seems to me, they are comparing Tampines Court with HDB BTO estates - but we are not selling to a developer who will go on to build low priced BTO's (build to order HDB) - no, the lucky developer will build about 1700 high priced private apartments ... so it seems they are being disingenuous in their comparisons. 






2 comments:

  1. Vintage Huttons: Convolution of Interest

    ReplyDelete
  2. Can't believe SC chose Huttons not once, but twice.
    This committee released our secret RP not once, but twice.

    Two Wrongs don't make you right.........uhmm, not quite
    ...because we're not too bright to see the light, to do it right.....tighten it
    ...my belt's not tight enough arh?........silly, keep it short, end with 'right'
    ...we're too blur to get it right.........true, but lacks Poetic elegance
    ...Enbloc Police will soon read us our rights...Bad! there's a Keats inside, get him out !
    ...and still can't get it right...........good enough, nobody's perfect
    Seriously, we all know the correct version is: 'Two wrongs don't make it right'
    I feign unfamiliarity to get some laughs and cause hurt.

    Mr MA I disagree with your RP, it's your professional recommendation, I accept that. It's the lack of transparency, engagement and accountability that concerns us. SPs can't really tell if it's even close to a best price. It's incredulous that SC release our RP to the general public and continue to keep us in a 'Black Hole' on Enbloc matters.
    Are you guys hiding your incompetence in a cloak of unreasonable confidentiality? Or are you feeling inadequate and intimidated be more astute SP around you exposing your many blunders?

    Mr Chairman, do some fellow SC subscribe to this: 'sharing some thoughts on RP to SP is an almost unpardonable crime, when SC has fixed it'...Really?
    Taunting emails among members? Serious character flaws in your team, Sir.
    Honestly, we have no way to confirm all this.
    From his actions, he seems conscientious, diligent and principled.
    We are more concerned with your team, it needs to be closely watched. Your recent moves make it difficult. From our observation, Your ex member is more believable.

    I know that readers are smart enough to see through my pretense.
    You think SPs are so stupid, you can get away with silly, incredulous, insipid explanations.

    I KNOW SPs are smart, you guys, on the other hand hope and pray they're not.



    ReplyDelete