Tag Archives: HUDC

Eunosville up for collective sale by tender

A 330-unit residential development, Eunosville, is up for collective sale by tender with a reserve price of S$688 million, according to its exclusive marketing agent Jones Lang LaSalle (JLL). If sold, the development located opposite the Eunos MRT station will be the second largest ex-HUDC estate sold collectively in absolute price terms, as well as the largest en bloc sale in six years.

Built in the late 1980s by the former Housing and Urban Development Company (HUDC), a unit of the HDB, Eunosville was privatized in 2011. With a land area of approximately 376,712 sq ft and a gross plot ratio (GPR) of 2.8, the development is zoned Residential under the Master Plan 2008. The site could potentially yield 1,000 units with an average size of 1,100 sq ft.

En bloc sales specialist Credo Real Estate was appointed by the owners as their property consultants for the collective sale in May 2012. Credo Real Estate was later acquired by JLL in September.

“It is not often that a privatised HUDC estate is launched for collective sale, largely due to the sheer size of such estates,” says Mr Tan Hong Boon, Regional Director of Investments at Jones Lang LaSalle.

“The lack of new supply of large-scale residential projects in the vicinity should also bode well for the successful purchaser of Eunosville. Based on latest URA-compiled statistics provided by developers, there are only about 30 unsold new residential units available in large projects (of at least 300 units) within the 2-km radius of Eunosville,” added Tan.

The owners of Eunosville are expecting offers in excess of their minimum price of S$688 million, or S$799 psf ppr over its potential GFA, including estimated differential premiums of S$155 million payable to top up the lease to 99 years.

According to the release, the minimum bid rate of S$799 psf/pr is highly competitive compared to a number of sold Government Land Sales (GLS) sites close to MRT stations.

The existing development is comprised of six mid-rise and four low-rise blocks and has a remaining lease of about 74.5 years. The owners are on their first attempt at selling the estate on a collective basis.

The tender for Eunosville closes on 24 July at 2:30 pm.

Source PropGuru – 19 Jun 2013

Why Braddell View owners may not all vote to privatise

Braddell View residents may favour privatisation but feel compelled to vote against it if the premiums are too high, said Member of Parliament (MP) Hri Kumar Nair yesterday.

Changes to the HUDC Housing Estates Act were passed in Parliament yesterday to allow HUDC owners the flexibility to vary the fees that each owner has to pay for privatisation. Previously, the fee had to be divided equally among all the owners.

Mr Hri Kumar, the MP for the area, said he supported the amendments, which would make it easier for Braddell View residents to privatise their estate.

Braddell View, the last HUDC estate that has yet to be privatised or earmarked for privatisation, was developed in two phases. The amendments would allow owners in each phase to pay a different fee, as determined by the Chief Valuer.

However, Mr Hri Kumar noted that some would face practical difficulties. “Chief among these will be the premium they must pay,” he said, pointing to the fact that a large number of homeowners were retirees who would have difficulty forking out the “thousands of dollars it will cost to privatise”.

He added: “This will be exacerbated by the sum some of them may have to pay, to top up the lease for Phase One of the estate to make up for the difference in the two phases.”

Minister of State (National Development) Lee Yi Shyan said flat owners can use savings from their Central Provident Fund (CPF) Ordinary Accounts.

Owners who are 55 and above can use savings from their Retirement Accounts as long as the minimum sum is maintained. They can also add their children as owners and use their children’s CPF.

In addition, the estate’s sinking funds can go towards paying the premium.

Mr Lee estimated that owners have about six months to pay the premium and the revised Act makes a provision for the Housing and Development Board to grant an extension if necessary. Sumita Sreedharan

Source : Today – 2012 Jul 10