An aerial view of Rio Casa, a 286-unit development at Hougang Avenue 7. (Photo: Knight Frank Singapore)
Four former Housing and Urban Development Company (HUDC) estates have changed hands so far this year via en bloc sale — the highest in any year, reported Channel NewsAsia.
These are Rio Casa, Eunosville, Serangoon Ville and Tampines Court.
This brings the overall number of ex- HUDC estates sold through collective sale to 11, but the seven remaining ones are already at some point in the en bloc process as of Monday (3 October).
For instance, Lakeview and Braddell View are considering to form a collective sales committee this month, while Chancery Court is looking for a marketing agent.
Pine Grove, Laguna Park and Ivory Heights have already hired marketing agents, whereas Florence Regency is re-looking its bids.
Constructed in the 1970s and 80s, HUDC estates cater to middle-income families who can afford something better than HDB flats, but still find private housing expensive. Subsequently, the government started privatising these developments in 1995.
However, it could take some time before the 918-unit Braddell View is launched for sale, as its management committee hopes to increase its 2.1 plot ratio to 2.8 or 3.2.
The Urban Redevelopment Authority (URA) told management committee chairman Alex Teo that before it can consider raising the plot ratio, there needs to be a new exit road for cars in addition to the existing one leading to Braddell Road.
He estimates that if Braddell View is sold at its present plot ratio, they could get $2 billion, but if it its increased to at least 2.8, the residents would receive nearly $3 billion.
Meanwhile, Edmund Tie & Company senior research director Dr Lee Nai Jia revealed that home builders can redevelop ex-HUDC sites into projects with more units as these estates were designed with large unit sizes and lots of open spaces.
He also believes that the en bloc market will remain hot for at least another nine months amidst the recovery in Singapore’s primary housing market, even after 11 residential sites have already been sold via collective sale so far this year for over $3.6 billion in all.
This article was edited by Keshia Faculin.