Results 1 to 12 of 12

Thread: Braddell View gets closer to kick-starting process

  1. #1
    Join Date
    Oct 2011
    Posts
    10,829

    Default Braddell View gets closer to kick-starting process

    Braddell View plans to join collective sale rush

    Sep 19, 2017

    Largest of 18 former HUDC estates hoping developers will pay $2b for sprawling site

    Grace Leong


    Braddell View, the largest of Singapore's 18 former HUDC estates, is planning to jump on the collective sale bandwagon, just months after it was privatised.

    The 918-unit development is holding a meeting on Oct 10 to form a collective sale committee to kickstart the process.

    Mr Alex Teo, chairman of the Management Corporation Strata Title, told The Straits Times yesterday that they hope to sell the estate for more than $2 billion - a price that would dwarf Pine Grove's $1.65 billion attempt at selling en bloc.

    The sprawling 1.124 million sq ft development has 63 years left on its 99-year lease.

    Braddell View was privatised in March after a hard-fought process that spanned 18 years because of the need to "harmonise" the leases of two separate plots of land that make up the estate.

    Now, many owners want to capitalise on the en bloc fever that has been building in the market this year. "We did a survey on Aug 18 on whether the residents wanted to sell the property en bloc. Out of 400 who responded, about 82 per cent wanted to go for it," Mr Teo said. "Based on the target price of above $2 billion, each owner can probably get above $2 million on average," he said.

    Ms Alice Liew, 58, a Braddell View resident for 31 years, said: "We were quite encouraged that we got privatised. Now that that hurdle is out of the way, we are all excited about the next phase - which is selling en bloc.

    "We really love this place because of the space, its central location. It's near Braddell, Marymount and Caldecott MRT stations. It is very convenient but the estate is getting quite old.

    "But if we don't get the right price, and have to end up with a much smaller unit in Punggol or further out, then I won't be in favour of the sale..."

    Ms Liew, who owns a 1,800 sq ft apartment, acknowledged that there are a number of other developments at various stages of a collective sale process.

    "We have a very big piece of land. I'm not sure if one developer can take it upon themselves to develop it. They have to consider what's profitable for them, and we have to consider what's reasonable for us," she added.

    The residential site has a 2.1 plot ratio, so a project of up to 3,000 units could be built there, according to analysts. Mr Teo said there are talks under way to raise the plot ratio to between 2.8 and 3.2.

    Dr Lee Nai Jia, head of research at Edmund Tie and Company, noted: "The market can only absorb one or two big sites. Because the site is so big, developers will need to factor in expected costs if they cannot finish selling the completed units."

    Selling all the units within five years of buying the land to avoid additional buyer's stamp duty will pose a challenge, analysts said. This could affect the price developers are prepared to pay for the site.

    "Braddell View is attractive, given its central location and proximity to a number of MRT stations. But there are so many en bloc sites available," Dr Lee said. "There's Pine Grove and Normanton Park. It could depend on which one is faster in launching their site for sale."

    Projects such as The Interlace and d'Leedon, which were built on large sites sold during the 2007 collective sale boom, still have unsold units, Mr Nicholas Mak, executive director of the ZACD Group, noted.

    Chef Bjorn Shen, 35, owner of Artichoke restaurant, said he has lived at Braddell View since he was 17.

    "We love where we are. I bought over my late grandfather's unit in 2013, and my step-mum lives just three floors below us," he said.

    "We haven't decided on selling en bloc. We are still weighing the pros and cons, but having to move out means we would be closing the door on a very precious part of our lives."

  2. #2
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    Braddell View hops onto en bloc bandwagon

    Sep 19, 2017

    Lynette Khoo


    BRADDELL View, the largest of Singapore's 18 HUDC estates and the last to be privatised in March this year, is kick-starting its en bloc journey.

    The 918-unit estate is holding an extraordinary general meeting on Oct 10 to form the collective sales committee (CSC). The 99-year-lease Braddell View development has 63 years left on its lease.

    Market watchers note that it is still early days pending the appointment of a marketing agent and lawyers to draft the collective sales agreement. But a Straits Times report on Monday said owners hope to sell the sprawling 1.124 million sq ft development for at least S$2 billion - a price tag that will eclipse Pine Grove's S$1.65 billion en bloc attempt. The largest en bloc deal to date was in 2007, when the 618-unit Farrer Court was sold for S$1.34 billion to CapitaLand.

    The en bloc fever has just started with eight sites sold for S$3.5 billion, including one industrial site, leading many watchers to believe that the en bloc up cycle is still at a nascent stage and the property market is in the early stage of recovery.

    "Historically, spikes in en bloc sales have preceded property sector price recovery in the past cycles in 2007 and 2011," said Vikrant Pandey, a property analyst with UOB KayHian.

    "We foresee the nascent recovery spreading to the mid-high end segment in the next wave, driven by replacement demand from en blocers and a pick-up in foreign homebuying interest from foreigners," he added. "We expect Singapore property prices to rise by 5-10 per cent next year after bottoming out this year (12-15 per cent correction from peak)."

    Mr Pandey said he believes the en bloc fever could run until the end of next year, as a surge in en bloc sales could span between six and eight quarters.

    Credit Suisse property analysts said in a note that they believe large listed developers such as City Developments and UOL Group are well placed to replenish land banks via en bloc sites, especially for former HUDC estates with large ticket sizes.

    About 12,000 new private homes could potentially be generated from the 10 residential collective sales that have been transacted since last year and from another seven sites which have been launched, but the tenders for which have yet to close or be awarded, JLL estimated.

  3. #3
    Join Date
    Aug 2009
    Posts
    3,943

    Default

    High chance that they cannot find the marketing agent and lawyer. The site is too huge

  4. #4
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Not sure how much is their sinking fund, or how much they are spending annually on Maintenance.

    I visited a friend there recently and the conditions of their unit is BAD.

    Despite several rounds of 'renovations', their ceiling is flaking off. Paintings and patchings did not help. When there is a strong breeze, they get 'snow' .....



    In the end they put up false ceiling to cover up.

    This is but one of the many units with this problems.

    It is a huge estate. And it is old. Constant maintenance is not feasible. And maybe not possible if their Sinking fund is weak. Constant increases in maintenance and sinking fund will hurt owners. especially when the rent there is really cheap.


    So when the situation gets too bad too much, right price or not, it has to go...

    This is the same problem for many old estates.

  5. #5
    Join Date
    Aug 2009
    Posts
    3,943

    Default

    The complexity in old LH estate, once remaining lease <50 years, it is going to be very very difficult to find buyers.
    If u have chance to visit the older flats like Laguna Park, Lagoon View etc, the conditions are not much better, especially they are very near to the sea.

  6. #6
    Join Date
    May 2012
    Posts
    4,035

    Default

    We need someone who believes in 100 year old estates to come in.

    Teddybear?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  7. #7
    Join Date
    May 2008
    Posts
    9,279

    Default

    Quote Originally Posted by proud owner View Post
    Not sure how much is their sinking fund, or how much they are spending annually on Maintenance.

    I visited a friend there recently and the conditions of their unit is BAD.

    Despite several rounds of 'renovations', their ceiling is flaking off. Paintings and patchings did not help. When there is a strong breeze, they get 'snow' .....



    In the end they put up false ceiling to cover up.

    This is but one of the many units with this problems.

    It is a huge estate. And it is old. Constant maintenance is not feasible. And maybe not possible if their Sinking fund is weak. Constant increases in maintenance and sinking fund will hurt owners. especially when the rent there is really cheap.


    So when the situation gets too bad too much, right price or not, it has to go...

    This is the same problem for many old estates.
    problem is, given the current en bloc fever, owners of these big land old leasehold estates will tend to ask for the sky or at least on the high side. the end result could be that they fail to sell and miss the boat. so far florence regency, normanton park which are closing soon have asked for reasonable prices and chances are, there will be buyers at prices which will beat their expectations but as the fever gains pace, greed will set in and those who join in later will find it harder to sell, especially when they are larger quantum yet asking for too high a psf.

  8. #8
    Join Date
    Oct 2012
    Posts
    1,163

    Default

    Quote Originally Posted by bargain hunter View Post
    problem is, given the current en bloc fever, owners of these big land old leasehold estates will tend to ask for the sky or at least on the high side. the end result could be that they fail to sell and miss the boat. so far florence regency, normanton park which are closing soon have asked for reasonable prices and chances are, there will be buyers at prices which will beat their expectations but as the fever gains pace, greed will set in and those who join in later will find it harder to sell, especially when they are larger quantum yet asking for too high a psf.
    Wow florence regency is asking min $600m this converts to $779psf/pr. If add in lease top up likely another $200m which will close to $1000psf/pr. So is add in construction cost maybe $1300psf breakeven. Developer may sell at 1500psf?? Rio Casa previous enbloc is too cheap.

  9. #9
    Join Date
    Aug 2009
    Posts
    3,943

    Default

    The developers have too many choices now, and more to come. They know the risks in buying with their limited budget.
    U look at Tampines Court....only one bidder... Not sure whether Sim Lian regretted or not

  10. #10
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    There are many buildings more than 100 years old or 200 years old or more in the world that are inhabited (even in hot and humid countries similar to Singapore)!
    Why they are still standing and usable while Singapore's old estate and buildings are in such bad shape?

    The truth is that it is not because old buildings cannot be maintained, the truth is that many people in these estate, especially those MC members, they want to enbloc the properties to get a windfall and purposely let the buildings rot! Yes, let the buildings rot so that those who are not willing to enbloc will have no choice but to agree since their buildings are not pleasant to live in for long!

    Quote Originally Posted by proud owner View Post
    Not sure how much is their sinking fund, or how much they are spending annually on Maintenance.

    I visited a friend there recently and the conditions of their unit is BAD.

    Despite several rounds of 'renovations', their ceiling is flaking off. Paintings and patchings did not help. When there is a strong breeze, they get 'snow' .....



    In the end they put up false ceiling to cover up.

    This is but one of the many units with this problems.

    It is a huge estate. And it is old. Constant maintenance is not feasible. And maybe not possible if their Sinking fund is weak. Constant increases in maintenance and sinking fund will hurt owners. especially when the rent there is really cheap.


    So when the situation gets too bad too much, right price or not, it has to go...

    This is the same problem for many old estates.

  11. #11
    Join Date
    May 2008
    Posts
    9,279

    Default

    Quote Originally Posted by star View Post
    Wow florence regency is asking min $600m this converts to $779psf/pr. If add in lease top up likely another $200m which will close to $1000psf/pr. So is add in construction cost maybe $1300psf breakeven. Developer may sell at 1500psf?? Rio Casa previous enbloc is too cheap.
    the 779psf includes the lease top up already.

  12. #12
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    Braddell View gets closer to kick-starting process

    Oct 12, 2017

    Grace Leong


    SINGAPORE - Former HUDC estate Braddell View is one step closer to jumping on the collective sale bandwagon.

    Mr Alex Teo, chairman of the Management Corporation Strata Title, told The Straits Times on Wednesday (Oct 11) that 493 voted on Tuesday in support of forming the collective sales committee to kick-start the process, while 28 voted against.

    An owner at the 918-unit development said: "I think the general feeling is that there is no harm in exploring the possibility. Let's wait and see what the committee can come up with."

    The move is hardly unexpected, given the recent surge of collective sales, often involving former HUDC estates.

    There have been 18 HUDC estates privatised, with 11 sold en bloc, since 2005, according to consultants. Ivory Heights is on the market, while Braddell View, Pine Grove, Laguna Park, Chancery Court and Florence Regency have started the collective sale process.

    Normanton Park, a privatised housing estate built in 1977 for military personnel and their families, was sold last week for $830.1 million in one of the country's biggest collective sales.

    Mr Teo said earlier the owners hoped to get more than $2 billion for Braddell View - well above the $1.65 billion Pine Grove is seeking.

    Braddell View, the largest of the former HUDC estates at 1.124 million sq ft, has 63 years left on its 99-year lease. It is within walking distance of Caldecott MRT station and close to the suburbs of Bishan and Toa Payoh.

    "The site is large, which implies the quantum will be high. Notwithstanding that, the sale of 488-unit Normanton Park suggests that there are developers that have the appetite for larger sites, especially if there is scope to intensify the site," noted Dr Lee Nai Jia, head of research at Edmund Tie & Company.

    But ZACD Group executive director Nicholas Mak sees challenges in getting developers to bite. "The absolute size of Braddell View is a challenge because it requires a huge amount of capital to be committed to just one project," he said. "They will have a better chance if they split the land into three parcels, but that is extremely difficult to do.

    "Normanton Park's total quantum is about $1.3 billion, and its land area is about 661,000 sq ft. Braddell View's quantum is much bigger, and its land area is almost double that of Normanton Park's.

    "Developers are likely to be more prudent in their bids, given that cooling measures are still in place and developers have a fixed timeline to sell units."

Similar Threads

  1. Former HUDC Braddell View to be put up for en bloc sale at S$2.08b
    By reporter2 in forum En Bloc Discussion and News
    Replies: 10
    -: 31-05-19, 00:36
  2. Braddell View en bloc signing hits 80% consent
    By reporter2 in forum En Bloc Discussion and News
    Replies: 0
    -: 07-02-19, 17:13
  3. Final HUDC estate Braddell View up for privatisation
    By princess_morbucks in forum Singapore Private Condominium Property Discussion and News
    Replies: 21
    -: 03-02-14, 21:25
  4. Braddell view to be privatised?
    By mkl22 in forum Central North
    Replies: 10
    -: 27-02-13, 18:15
  5. Move to aid privatisation of Braddell View
    By reporter2 in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 23-05-12, 00:21

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •