Final HUDC estate Braddell View up for privatisation

[princess_morbucks]

http://www.straitstimes.com/breaking-news/singapore/story/final-hudc-estate-braddell-view-privatisation-20140128

The last of Singapore's 18 HUDC estates, Braddell View, has been designated for privatisation, said the Ministry of National Development on Tuesday.
But before the privatisation works can begin, land lease issues must be sorted out. The estate, comprising 918 flats and two shops, was developed in two phases on two separate land leases, with different expiry dates.
To harmonise these leases - such that they have the same expiry date - the land lease of the older land parcel will be "topped-up" to that of the newer one. A land premium must thus be paid by every flat owner in the estate.
Residents will vote on whether to privatise the estate. If the required mandate of at least 75 per cent in favour of the move is obtained, the amount of top-up premium will be determined by the Chief Valuer Office and the Housing Board will apply to the Singapore Land Authority for the top-up.

[princess_morbucks]

http://mndsingapore.wordpress.com/2014/01/28/helping-to-fulfil-housing-aspirations/

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Today, Braddell View Housing and Urban Development Company (HUDC) estate will be designated for privatisation. It is the last of 18 HUDC estates in Singapore to be so designated. Symbolically, the designation marks the end of the HUDC era.

The first batch of HUDC estates was built in the 1970s to help middle-income families own their homes. At that time, some found private properties out of reach, but they did not qualify for new HDB flats. There were also few public housing units available for resale in the open market. The HUDC scheme was conceived, and 18 estates were built. They were very well received by Singaporeans.

I remember HUDC well. I was new to Singapore in late 70s, having just graduated from the University. My wife and I did some house hunting and zeroed in on the HUDC estate at Novena. As it turned out, the purchase did not materialise and we ended up renting from the HDB at Bedok for a number of years.

However, by the 1980s, demand for HUDC flats has dwindled, as by then there were more HDB flats in the resale market. HDB has also introduced the Executive Flats as an alternative housing option, and private properties had also become more affordable after a declining property cycle.

In 1987, HDB stopped building HUDC altogether. By then, 18 estates had already been built. In 1995, HDB started to privatise the HUDC estates, enabling these families to become private property owners, if they so wish.

We have come a long way since we started building HUDC estates in the 1970s. Housing policies are dynamic and evolve with changing circumstances. HDB has since stopped building Executive Flats and Executive Condos have also been born.
The era of HUDCs has ended. However, HUDC estates will remain a testament to the creative ways in which we have housed our people and help them fulfil their dreams.

[princess_morbucks]

http://www.straitstimes.com/breaking-news/singapore/story/final-hudc-estate-braddell-view-privatisation-20140128

The last of Singapore's 18 HUDC estates, Braddell View, has been designated for privatisation, said the Ministry of National Development on Tuesday.
But before the privatisation works can begin, land lease issues must be sorted out. The estate, comprising 918 flats and two shops, was developed in two phases on two separate land leases, with different expiry dates.
To harmonise these leases - such that they have the same expiry date - the land lease of the older land parcel will be "topped-up" to that of the newer one. A land premium must thus be paid by every flat owner in the estate.
Residents will vote on whether to privatise the estate. If the required mandate of at least 75 per cent in favour of the move is obtained, the amount of top-up premium will be determined by the Chief Valuer Office and the Housing Board will apply to the Singapore Land Authority for the top-up.

Usually for the other estate without this problem, who pays for the top up of the land lease?
Or they don't top up at all?

[leesg123]

Our gov is very kind and compassionate. By giving them the chance to privatised, it also means paving the way for enbloc for their aging building.

Technically, and legally, our Gov could have just let the lease run its course and let it expire and collect back the land and resell it to developer. Instead, they give the resident there the huge pot of gold.

[VS]

Our gov is very kind and compassionate. By giving them the chance to privatised, it also means paving the way for enbloc for their aging building.

Technically, and legally, our Gov could have just let the lease run its course and let it expire and collect back the land and resell it to developer. Instead, they give the resident there the huge pot of gold.

Topping up the lease will not be cheap, and no guarantee that enbloc will be successful.

[CRViper]

So after privatsation HUDC effectively becomes a private condo? Or it's just for the purpose to allow private developer to offer enbloc?

[DC33_2008]

It is at a good location with niece view towards the reservoir. But not cheap for developer to swallow and no 5-minute walk mrt stn.
Topping up the lease will not be cheap, and no guarantee that enbloc will be successful.

[princess_morbucks]

It is at a good location with niece view towards the reservoir. But not cheap for developer to swallow and no 5-minute walk mrt stn.

918 units plus 2 shop units....too many ...hard to enbloc.
Will be too expensive for developer.

[EBD]

So after privatsation HUDC effectively becomes a private condo? Or it's just for the purpose to allow private developer to offer enbloc?

Yes & maybe.

I get the feeling they will want to enbloc.
I looked at this place as a stop gap. Land is huge! & quite nice even though a little old fashioned.
Not sure if any developer will have big enough pockets to buy the whole thing.

Also if the people go for enbloc they better steel themselves for a significantly smaller replacement unit.

[DC33_2008]

A colleague of mine got a unit there. There are huge but maintenance cost is rising there.
918 units plus 2 shop units....too many ...hard to enbloc.
Will be too expensive for developer.

[princess_morbucks]

A colleague of mine got a unit there. There are huge but maintenance cost is rising there.

Yes, huge by today's standards.
I remember bunking overnight at a friend's place there many years ago.
The walk up to the estate was laborious.

[CRViper]

Yes & maybe.

I get the feeling they will want to enbloc.
I looked at this place as a stop gap. Land is huge! & quite nice even though a little old fashioned.
Not sure if any developer will have big enough pockets to buy the whole thing.

Also if the people go for enbloc they better steel themselves for a significantly smaller replacement unit.

I had always had the assumption thaw enbloc potential is only high if the GFA build up has not been maximized, not sure has Braddell View been built to the max?

Current residents there for the same quantum they get from the enbloc (if any) confirm will not be able to get another unit in that area with the same size seeing all the new units now are super small with huge balconies

[mkl22]

I had always had the assumption thaw enbloc potential is only high if the GFA build up has not been maximized, not sure has Braddell View been built to the max?

Current residents there for the same quantum they get from the enbloc (if any) confirm will not be able to get another unit in that area with the same size seeing all the new units now are super small with huge balconies

quite unlikely that the GFA has been maximized. the land is huge and lots of space between the blocks. I grew up there. A nice semi self contained place to run around when i was young. But having visited it recently. it has become quite run down. the lifts seem to be the same since day 1 in 1978.

[EBD]

I had always had the assumption thaw enbloc potential is only high if the GFA build up has not been maximized, not sure has Braddell View been built to the max?

Current residents there for the same quantum they get from the enbloc (if any) confirm will not be able to get another unit in that area with the same size seeing all the new units now are super small with huge balconies

Depends - I have been in 2 projects that enbloc'd with no change in plot ratio, but they were both downtown where there is no land just lying about for developers to buy - so if they want it, they'll buy it even without the increase in plot ratio.


Of course bradell heights looks very low plot ratio - and the people living there would not be smart to sell it as is. I'm sure any developer than bought it would go straight to the ura to lobby for the plot ratio to be increased.
Why give it to the developer?

[Ringo33]

I had always had the assumption thaw enbloc potential is only high if the GFA build up has not been maximized, not sure has Braddell View been built to the max?

Current residents there for the same quantum they get from the enbloc (if any) confirm will not be able to get another unit in that area with the same size seeing all the new units now are super small with huge balconies

You are right. There is very litte potential for going en bloc for this project because people who buy into bv are often attracted by the space and location rather then en bloc.

[leesg123]

You are right. There is very litte potential for going en bloc for this project because people who buy into bv are often attracted by the space and location rather then en bloc.

Wait till it is left with 20 years, they will panic and cry father mother as it will depreciate to $0

[DC33_2008]

Just look at Neptune Court and Mandarin garden. This will be a far better location than Braddell View. Still can hope for a nearby mrt stn along ERL.
Wait till it is left with 20 years, they will panic and cry father mother as it will depreciate to $0

[radha08]

enbloc or ROADBLOCK:rolleyes:

[Ringo33]

Wait till it is left with 20 years, they will panic and cry father mother as it will depreciate to $0

can you find a better place with this price?

[reporter2]

http://www.straitstimes.com/archive/wednesday/premium/top-the-news/story/last-hudc-estate-starts-voting-going-private-20140129

Last HUDC estate starts voting on going private

Braddell View 'very close' to getting required 75 per cent mandate

Published on Jan 29, 2014

By Janice Heng And Rachel Au-Yong


THE HUDC era of public housing came to an end yesterday, with Braddell View becoming the last such estate to be put up for privatisation.

The sprawling, leafy area is the last of 18 Housing and Urban Development Company estates to start the journey towards becoming private property, in a move announced by the Ministry of National Development yesterday.

"This is a hope that everybody has wanted to achieve," said Braddell View management committee chairman Alex Teo. The plan is 16 years in the making, he added.

The committee is now collecting residents' signatures and is "very close" to getting the required 75 per cent mandate, said Mr Teo.

But if and when the vote succeeds, land lease issues must first be sorted out before privatisation work can start.

The estate, comprising 918 flats and two shops, was developed in two phases on two separate land leases. One expires on Feb 2, 2078, while the other expires on July 31, 2080.

To harmonise them, the land lease of the older land parcel will be "topped up" to that of the newer one, so that they share the same 2080 expiry date.

Residents told The Straits Times that they have reached a tentative agreement among themselves on the land premium - those living in the older part of the estate will bear 60 per cent of the premium, with the rest borne by those in the newer part. Their estimates are $12,000 and $8,000 respectively.

Privatisation is often seen as the first step towards a collective sale. But residents The Straits Times spoke to said they did not have an en bloc sale on their minds.

Real estate firm director Elizabeth Seah, 54, said she would vote for privatisation "so that our own management committee can handle the estate's affairs".

"Without privatisation, if we want to upgrade anything, we'd have to ask HDB," she said.

Property analysts noted Braddell View's desirable central location, but said its sheer size - at 106,000 sq m - could prove a formidable challenge for developers.

"This project is worth well above $1 billion," said Century21 chief executive officer Ku Swee Yong, adding that the risk of such a costly project is "rather huge".

Of the other 17 HUDC estates, 13 have been successfully privatised, while four are in various stages of the process.

These are in Hougang Avenue 2 and 7, Potong Pasir Avenue 1, and Serangoon North Avenue 1.

In a blog post yesterday, Minister for National Development Khaw Boon Wan reflected on the move and the history of the HUDC policy.

The first batch of HUDC estates was built in the 1970s to help middle-income families own their homes.

"I remember HUDC well," wrote Mr Khaw. "I was new to Singapore in the late seventies, having just graduated from university. My wife and I did some house-hunting and zeroed in on the HUDC estate at Novena.

"As it turned out, the purchase did not materialise," he recalled.

By the 1980s, demand for HUDC flats had dwindled, as by then there were more Housing Board flats on the resale market.

HDB had also introduced executive flats as an alternative housing option, and private properties had also become more affordable after a declining property cycle.

HDB stopped building HUDC estates in 1987 and began privatising them in 1995.

"The era of HUDCs has ended," said Mr Khaw.

"However, HUDC estates will remain a testament to the creative ways in which we have housed our people and help them fulfil their dreams."

[email protected]

[email protected]

[reporter2]

http://www.businesstimes.com.sg/archive/wednesday/premium/singapore/braddell-view-privatisation-20140129

Published January 29, 2014

PROPERTY WATCH

Braddell View up for privatisation

MC needs mandate to harmonise leases as estate was built in two phases

By Mindy Tan [email protected]


HUDC estate Braddell View has been designated for privatisation, the Ministry for National Development (MND) said yesterday. It is the last of 18 HUDC estates to be designated for privatisation.

Before this can take place, the estate's managing committee will have to get the requisite 75 per cent mandate to privatise, and then harmonise the leases for the estate.

This is because Braddell View, which comprises 918 flats and two shops, was developed in two phases on two separate land leases with different expiry dates.

To harmonise the leases, the land lease of the older land parcel will have to be topped up to be on a par with the newer one. Payment of land premium is required for the top-up, the amount of which will be determined by the Chief Valuer Office.

"After the lease top-up, the whole process of legal privatisation can be expected to take about 15 months, barring any unforeseen circumstances," said MND.

The project covers an area of 106,120 square metres, and has full condominium facilities, such as tennis courts, a swimming pool and a club house.

"There will always be en bloc potential as long as there is unutilised plot ratio and whenever demand for land on a scale of this nature comes back into the market," said Karamjit Singh, head of investments and residential at Jones Lang LaSalle.

CBRE research head Desmond Sim agreed, but noted that the en bloc market is currently quieter. "The en bloc may not happen soon, but residents need to be prepared (to lower their price expectations). As long as residents can have at least a 20 per cent premium, they can go ahead with the en bloc because it's all about matching owners' and buyers' pricing."

He added: "It shouldn't take abnormally long (for the privatisation to go through) . . . because it's a small price to pay to prepare yourself for the resale market."

Of the 18 HUDC estates which have been announced for privatisation, 13 have been privatised. Four others - at Hougang Ave 2 and 7, Potong Pasir Ave 1 and Serangoon North Ave 1 - are at various stages of privatisation.

Writing on his blog yesterday, National Development Minister Khaw Boon Wan described Braddell View's designation for privatisation as the symbolic end of the HUDC era.

Mr Khaw recalled that the first HUDC estates were built in the 1970s to enable middle-income families to own their homes. By the 1980s, demand for HUDC flats had dwindled as there were more HDB flats in the resale market by then. HDB had also introduced executive flats as an alternative housing option, and private properties had also become more affordable.

In 1987, HDB stopped building HUDC flats altogether. In 1995, the board started to privatise the HUDC estates, enabling their dwellers to become private property owners.

"The era of HUDCs has ended. However, HUDC estates will remain a testament to the creative ways in which we have housed our people and help them fulfil their dreams," said Mr Khaw.

[princess_morbucks]

http://www.channelnewsasia.com/news/singapore/most-braddell-view/977954.html?cid=TWTCNA&utm_source=dlvr.it&utm_medium=twitter

SINGAPORE: The Braddell View management committee said more than 80 per cent of flat owners have agreed to the privatisation of the HUDC estate, as of 28 January.
This is already more than the 75 per cent mandate required to privatise.
Residents have to pay a top-up to harmonise the two leases on which the estate is built, which have different expiry dates.
The committee said according to the chief valuer from the Singapore Land Authority (SLA), the indicative top-up value given in September last year was S$13.47 million.
Braddell View was put up for privatisation by the government last week. It is the last HUDC estate to be put up for privatisation.

The management committee had started getting consent for privatisation after its Extraordinary General Meeting held in November last year.

This was after more than 98 per cent of those who attended approved of the resolution.

There are 918 flats and two shops in the estate.

Alice Liew, who has lived at Braddell View for 27 years, said: "We will feel more comfortable that it's our own estate finally and hopefully, the property price may go up a bit.”

One issue that had to be resolved before privatisation could happen was the two leases that expire on different dates.

They have to be topped up so they both expire in 2080.

Based on the indicative valuation, owners of flats built on the older land parcel, or Phase One, are expected to pay S$12,000. Residents under Phase Two will pay S$8,000.

The management committee plans to meet with the Housing and Development Board next week to discuss the next step and get a definitive top-up price.

The committee said it hired two private valuers in 2012, who both gave an estimate of S$8 million for the top-up, compared to the S$13.47-million figure it received from the SLA chief valuer.

Alex Teo, chairman of the Braddell View management committee, said: "According to present circumstances, the economy and property prices, everybody is keeping their fingers crossed - maybe we are expecting a much lower top-up price."

The committee said there have also been some who have raised concerns about paying the top-up premium.

Mr Teo "A lot of these retirees have been living quite some time without jobs and without income. These retirees don't have any children around. We’ll try to figure out how to help these residents."

The committee plans to hold a financial seminar once the final top-up value is determined, to educate and present owners their financing options - which include tapping their CPF or taking a loan from banks.

It also plans to use part of the estate's sinking fund to subsidise some of the costs.

There is currently around S$6 million in the fund.

Teresa Ng, who has been a Braddell View resident for almost 19 years, said: "The sinking fund can help to close to half of the deduction of the privatisation fee so that it's affordable."

The whole privatisation process is expected to take about 15 months, barring any unforeseen circumstances.


- CNA/xq