July 17, 2007
Newly privatised Laguna now prime collective sale target
But owners of 30-year-old HUDC estate have mixed feelings about selling homes
By Nicholas Fang
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ON THE CARDS: The conversion of Laguna Park to a strata-titled estate, meaning owners hold the title to their units and the common property, clears the way for a potentially lucrative collective sale. -- ST PHOTOS: DESMOND WEE, NICHOLAS FANG
THE Housing Board (HDB) announced yesterday that Laguna Park has been privatised, bringing mixed reactions from the owners of the 528-unit HUDC estate in Marine Parade.
The conversion to a strata-titled estate - it means owners now hold the title to their units as well as the common property - clears the way for a potentially lucrative collective sale.
Property consultants say they have been approached by owners at Laguna Park in recent months to discuss the estate's collective sale potential but some were not sure if they wanted one.
Of the six owners The Straits Times spoke to last night, three viewed the possibility positively while the others were not keen at all.
However, they were united in their affection for and emotional attachment to the 30-year-old estate with its sea views and prime East Coast location. And all of them expressed reservations about having to move should it be sold en bloc.
Retired pilot Tony Tan, 54, who has owned a 23rd-floor apartment for 20 years, said he would be interested in the possibility of a collective sale if the price was right.
'When I bought the place 20 years ago, I paid about a $50,000 premium over the going rate of about $350,000 at the time, just so that I could have a seafront view,' said Mr Tan, who lives there with his wife and two children.
'I truly love this place with the breeze and spectacular views, and I will be very sad to leave.'
Remisier Tan Thong Hian, 58, who also lives on the 23rd floor, felt that a collective sale was a definite possibility.
'The estate is old and some people could use the money. I think there will be no problem getting 80 per cent approval for a collective sale if the price is attractive.'
However, he also admitted he, his wife and son were facing a dilemma should the decision to sell en bloc is taken.
'I don't think we can find another place like this that is so big, quiet and has such views.'
Both Mr Mayur Vora, a self-employed commodities broker, and Mr S.C. Lim, managing director of management consultants Henry Noon & Co, were sceptical of an attempt at selling the estate en bloc due to the strong emotional attachment many residents felt to their home.
Mr Steven Ho, chairman of the Management Corporation Strata Title for the project, said that Laguna Park residents were to meet last night to discuss the latest developments but he declined to elaborate.
'As details and plans are not confirmed, I cannot comment as it depends on the owners,' he said. He did, however, confirm that there have been talks about the collective sale potential and admitted that there had been 'a lot of speculation'.
Property consultants DTZ Debenham Tie Leung and Credo Real Estate have both been approached by Laguna Park owners recently to potentially market a collective sale.
DTZ director Shaun Poh said: 'We were invited to do a presentation and hand in a proposal but we haven't heard anything official yet.
'Based on the site area of more than 677,000 sq ft and plot ratio of 2.8, we estimate that approximately 1,140 units of an average size of 1,500 sq ft can be built.'
Credo Real Estate managing director Karamjit Singh said that his firm was approached by residents just last month but that nothing official had been announced.
When asked how Laguna Park compared with Farrer Court, a former HUDC estate that was put up for sale at a whopping $1.5 billion in May, Mr Singh said: 'Right now, I would rate Farrer Court higher as it has a more central location.
'But if the market keeps going up, not just Laguna Park but any good-sized HUDC estate could surpass Farrer Court in time.'
Laguna Park is the 11th HUDC estate to be privatised since the Government's privatisation programme started in 1995.
Remaining estates such as Shunfu, Serangoon North and Eunosville are in various preparatory stages of the privatisation exercise, the HDB said.
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Kampung spirit
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The Laguna Park HUDC estate (above) was a lot quieter in the old days before the Pasir Ris estate and nearby developments such as the Bayshore condominiums sprung up.
Residents remember that when it was first offered for sale 30 years ago, traffic was considerably less.
Mr S.C. Lim, managing director of management consultants Henry Noon & Co, talks about the 'kampung spirit' then.
'HUDC estates were for middle- income families that did not qualify for HDB flats but could not afford private properties. We had a lot of young professionals and their families in the estate and there was a very friendly, kampung feel.'
He says the buildings and layout of the estate is largely unchanged from the early days. 'The trees are bigger but the look and feel is pretty much the same.'