mr funny
22-11-10, 17:59
http://www.straitstimes.com/Money/Story/STIStory_604932.html
Nov 19, 2010
Some large estates tried and failed
A COLLECTIVE sale of the 660-unit Pine Grove has moved one step closer to reality and would, if successful, become the largest collective sale in Singapore.
But it is unclear whether other large estates are likely to follow suit.
'Only half the battle has been won with the collection of 80 per cent of the residents' signatures,' said an industry analyst who declined to be named, referring to news earlier this week that Pine Grove had secured the requisite level of approval.
'The second half of the battle is to find a buyer. For it to be looked upon as a shining example, it must sell successfully. So it's still too early to say that this is going to change the attitude of owners at other estates.'
Several other large estates have attempted collective sales but have so far failed to garner the required level of support from residents.
These include Dairy Farm Estate, Clementi Park and Pandan Valley, which at 623 units, is the closest in both size and location to Pine Grove.
Earlier this year, a collective sale committee for the 489-unit Clementi Park was disbanded, with marketing agent Knight Frank admitting it did not think it was possible to get 80 per cent backing for the sale even if the reserve price was set higher.
When Dairy Farm Estate, which has 478 units, tried to go en bloc in 2007, two separate groups of residents started a petition against it.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said residents often find it hard to accept a collective sale, given the emotional attachment they might have to their homes.
However, if their estates keep trying to mount a sale, as Pine Grove did, it would gradually become easier for them to come around to the idea.
Of course, it also helps if residents are offered higher prices for their homes. But this would also have its potential drawbacks, Mr Tan noted.
'If it's too high, it lowers the chance that developers will want to bid for it.'
YASMINE YAHYA
Nov 19, 2010
Some large estates tried and failed
A COLLECTIVE sale of the 660-unit Pine Grove has moved one step closer to reality and would, if successful, become the largest collective sale in Singapore.
But it is unclear whether other large estates are likely to follow suit.
'Only half the battle has been won with the collection of 80 per cent of the residents' signatures,' said an industry analyst who declined to be named, referring to news earlier this week that Pine Grove had secured the requisite level of approval.
'The second half of the battle is to find a buyer. For it to be looked upon as a shining example, it must sell successfully. So it's still too early to say that this is going to change the attitude of owners at other estates.'
Several other large estates have attempted collective sales but have so far failed to garner the required level of support from residents.
These include Dairy Farm Estate, Clementi Park and Pandan Valley, which at 623 units, is the closest in both size and location to Pine Grove.
Earlier this year, a collective sale committee for the 489-unit Clementi Park was disbanded, with marketing agent Knight Frank admitting it did not think it was possible to get 80 per cent backing for the sale even if the reserve price was set higher.
When Dairy Farm Estate, which has 478 units, tried to go en bloc in 2007, two separate groups of residents started a petition against it.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said residents often find it hard to accept a collective sale, given the emotional attachment they might have to their homes.
However, if their estates keep trying to mount a sale, as Pine Grove did, it would gradually become easier for them to come around to the idea.
Of course, it also helps if residents are offered higher prices for their homes. But this would also have its potential drawbacks, Mr Tan noted.
'If it's too high, it lowers the chance that developers will want to bid for it.'
YASMINE YAHYA