http://www.straitstimes.com/News/Hom...ry_631837.html
Feb 6, 2011
For better or for worse
The Sunday Times talks to families whose lives were changed by a collective sale
By Jessica Cheam, Housing Correspondent
It is that time of the property cycle again. Mega collective sale launches worth upwards of $500 million have been making headlines.
Private property prices have hit historic highs amid a flood of foreign capital into Singapore, healthy developers' balance sheets and low interest rates.
There is no doubt Singapore's en bloc fever has returned.
Tulip Garden, for example, was reported to have a reserve price of $650 million, while Pine Grove's was a staggering $1.7 billion.
As I surveyed the property landscape this time of the year, I was overcome with a sense of deja vu. The conditions today reminded me of the property boom of 2007, in which a total of 116 collective sales generated record investment sales of $13.64 billion.
During that period, Horizon Towers in Leonie Hill sold for a record $500 million, then other projects smashed record after record: Gillman Heights sold for $548 million, Leedon Heights for $835 million and Farrer Court for $1.34 billion.
The arguments for collective sales are well known: some estates need urban rejuvenation, especially in land-scarce Singapore where gross plot ratios should be maximised to allow more homes to be built to house a growing population.
But as Singapore went through its strongest wave of collective sales in its history then, an unprecedented groundswell of dissatisfaction also rose among the residents.
There were bitter fights in court to halt the sale of Waterfront View, Gillman Heights, Horizon Towers and Tampines Court, to name just a few high-profile cases.
Some minority owners who refused to sell their homes won their cases after protracted lawsuits and hefty costs, such as at Horizon Towers and Tampines Court.
But most of the collective sales went ahead.
Amid the frenzy, there were many national debates surrounding the process and its legislation.
Many felt the law allowed for ambiguities that disadvantaged residents, especially those not willing to sell. A few MPs also voiced their concerns about whether such sales led to older properties being rejuvenated at a 'personal cost to citizens', with many residents experiencing social and spatial displacement after being forced to move.
In May last year, the Government passed new rules in Parliament to give greater clarity to the collective sale process.
Among other improvements, one key change was that after the first failed attempt at a collective sale, subsequent attempts will face more stringent requirements.
During these conversations, one underlying question that never went away was: How would the en bloc phenomenon - a symbol of Singapore's quest for progress and land efficiency - change the social fabric of society?
Will older folk be able to cope with a move to a new environment? Will it break up communities and neighbours who have built up friendships over decades? Or will it enable families to enjoy a better quality of life elsewhere?
As I thought about these questions amid our fresh en bloc boom, I decided it was time to track down some of these families whose lives were changed forever by the upheaval.
The Sunday Times decided to focus on one estate: Gillman Heights, whose sale was bitterly fought in court for more than two years.
Lawyers for the minority owners argued that the collective sale law had not been intended to cover HUDC estates. Another point of contention was the calculation of the development's age, which determines if an 80 or a 90 per cent level of consent is needed.
The Court of Appeal dismissed these points and gave the green light for the 607-unit, 99-year leasehold estate in Alexandra Road to be sold in 2009. It was a landmark case that clarified some ambiguity in the laws surrounding collective sales of former HUDC estates.
Through the interviews, I saw how some had adapted better than others to their new environment.
There were those for whom the sale cast a permanent shadow over their lives as they struggled to get used to living in a less-central location. Then there were those who managed to upgrade their homes and settle down with a higher or similar quality of life.
These are the stories of how people's lives have been changed - and their experience will tell you if the en bloc move has been for better or for worse.
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http://www.straitstimes.com/News/Hom...ry_631836.html
Feb 6, 2011
Most residents move on
Not many residents of estates that have been through an en bloc sale go on to buy a new home at the same location.
At Farrer Court, for example, 266 households, or 40 per cent of the 618-unit development, attended the preview of D'Leedon - the redeveloped project of Farrer Court, which offers 1,715 units.
Former owners of Farrer Court homes bought 52 units in D'Leedon at an average price of $1,680 per square foot (psf), said a CapitaLand spokesman.
For Gillman Heights Condominium (above left), a two-day preview for the redeveloped new project, The Interlace (above right), was held in September 2009 at a CapitaLand office in Shenton Way.
About 100 households visited the sales office, but a shouting match that involved the police erupted at the preview when residents complained that the units offered were too expensive and the selection was poor.
One resident also said brochures were not given, and they had to gauge the new condo from an 'amateurish miniature model which was a stark contrast to the sleek, three-dimensional and professionally crafted model displayed at the public launch'.
CapitaLand countered that the apartments offered made up a full spectrum of unit types. Only four units of The Interlace, a 1,040-unit project, were sold to former owners of Gillman Heights. The prices for the units under this first-phase release ranged from $850 to $1,150 psf.