The last remaining HUDC estate bound for privatisation signals the end of the HUDC era, media reports said.
Last week, the management committee of Braddell View announced that they were close to achieving the required authorisation from 75 percent of the residents.
"Symbolically, the designation marks the end of the HUDC era," said National Development Minister Khaw Boon Wan.
However, Braddell View’s privatisation is expected to take another 18 months while four other HUDC estates are still undergoing privatisation. If the move is completed though, owners will be allowed to sell their units, or aim for a higher windfall via an en bloc sale.
For instance, the 168-unit Amberville estate was sold en bloc in January 2006 for S$183 million. This translates to S$1.09 million per unit; a hefty 85 percent premium over its market value back then. The original cost of a three-bedroom unit then was less than S$100,000.
But getting the 80 percent approval from the residents could be hard. For example, during the en bloc attempt of Laguna Park in 2008, conflict between the unwilling residents and those who were for the sale resulted in the vandalism of the cars and mailboxes of the former.
"There’s a strong sense of attachment among residents too, in most potential en blocs, and some may be above monetary reasons for relinquishing their homes," said R’ST Research Director Ong Kah Seng.
The government built the first HUDC estates in the 1970s to help the sandwiched class, but it ended the scheme in 1987 due to dwindling demand. In total, only 18 estates with 7,731 units were developed.
Christopher Chitty, Senior Content Producer at PropertyGuru edited this story. To contact him about this or other stories, email christopher@propertyguru.com.sg
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