Shunfu Ville sale may be one-off

http://www.straitstimes.com/business...may-be-one-off

Shunfu Ville sale may be one-off

Rennie Whang

23 May 2016


News of the $638 million collective sale of Shunfu Ville last Friday must have been heartening for many owners of flats in ageing condos but the champagne should be kept on ice for a while longer.

Only one collective sale took place last year - mixed-use Thong Sia Building in Orchard - and none was completed in 2014.

This has not been for want of trying. Owners at Normanton Park and Amber Park are among those who have tried their luck in recent years and come up short. So while news of a collective sale could rekindle some excitement in the market, Shunfu Ville is likely to be the exception for some time.

Pricing has been the main stumbling block in most cases.

"While the Shunfu Ville sale could spark some life back into the market, the supply of realistically priced collective-sale opportunities is a key challenge," said Mr Karamjit Singh, international director of JLL, which brokered the Shunfu sale.

Apart from price point, site attributes, the size of a development and developers' outlook on the market are factors, said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia.

Going by the turnout for Shunfu Ville, most developers do not seem bullish. The site, first launched for sale last year, attracted two letters of interest - one of which was from eventual purchaser Qingjian Realty (South Pacific) Group. It again attracted only two parties, including Qingjian, when the site was relaunched in January despite the land cost of about $747 per sq ft per plot ratio being quite reasonable, compared with recent sales nearby.

Would-be bidders were no doubt wary of the large site, given the law now that developers must build and sell all units on a site within five years or face paying Additional Buyer's Stamp Duty. There is also more risk associated with sites sold en bloc, evident from the foiled sale of Gilstead Court, for example.

The market is not ideal for such deals and anybody wishing to sell in this manner will have to price the property accordingly or ride out the current period of uncertainty.

Rennie Whang

Shunfu Ville left only 70 years lease right. Is the developer going to ask for top up to 99 years, otherwise future users will be wary of 70 years left only ?

What happens if don't top up lease and sell at 1250psf?

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Originally Posted by watchlist88

Shunfu Ville left only 70 years lease right. Is the developer going to ask for top up to 99 years, otherwise future users will be wary of 70 years left only ?

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Qingjian expects to pay about $123 million in differential premium for intensifying land use and another $94 million to top up the lease in addition to the $638 million sale price. Overall, it is paying about $747 psf per plot ratio (psf pr) for the site, lower than the $791 psf pr the original reserve price would have entailed.

This is comparable to prices at recent Government Land Sales (GLS) sites, noted Mr Desmond Sim, CBRE research head for Singapore and South-east Asia. The Toa Payoh site of the future Gem Residences went for $755 psf pr last year, for example.

http://www.straitstimes.com/business...-sold-for-638m

Owner Teo Chong, 77, said he enjoyed the convenience of the project but noted that repair costs had been more onerous since the estate was privatised in 2013. Owner James Law, 74, who bought his unit for less than $230,000 back when Shunfu Ville was first launched, said he would miss the place. "We're a close-knit community and that is difficult to replicate."

The price works out to an average price of $1.782 million for owners of the 358-unit privatised Housing and Urban Development Company (HUDC) estate.

"We are very happy. I feel it's the right thing for Shunfu Ville - we are an ageing estate of about 30 years now, in a very good location and underutilising our plot ratio," collective sale committee chairman Woo Hon Wai told The Straits Times.

1996 HUDC SGD 230,000
2016 sold SGD 1.782 million.

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Originally Posted by Arcachon

"We are very happy. I feel it's the right thing for Shunfu Ville - we are an ageing estate of about 30 years now, in a very good location and underutilising our plot ratio," collective sale committee chairman Woo Hon Wai told The Straits Times.

1996 HUDC SGD 230,000
2016 sold SGD 1.782 million.

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Should be 1986, not 1996.

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Originally Posted by august

Should be 1986, not 1996.

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Thanks for the correction.

http://hudcsingapore.com/hudc/privat.../shunfu-ville/

Shunfu Ville is a dreamland for living! With Marymount Station (CC16) which is only about 300m away, you can travel around with ease. Of course there are many buses heading City or heading north towards Yishun and Sembawang to take from either Marymount Road or Thomson Road. Shops and market are just on the opposite side of Shunfu Road! If you have kids going to primary school, the famous Ai Tong Primary School is nearby. Raffles Institution and RJC is diagonally across Marymount Road which is beside the estate. Catholic High is also within the vincinity. Restaurants and eateries along Thomson Road are also accessible by foot! Shopping Mall like Bishan Junction 8 and Thomson Plaza are just 5 mins drive away! Don’t worry about parking, you can still find empty lots even if you come home late in the evening. Furthermore, the open parking lots are all around the blocks, which means you don’t have to carry loads of groceries up and down multi-storey carparks to your home! If you dream about having a house with huge floor area, HUDC is definitely a great choice.

Shunfu ville is one of the latest privatised HUDC, it was fully privatised with effect from 28 March 2013.

http://2.bp.blogspot.com/-gPTjfBAkYU...unfu-ville.jpg

Shunfu Ville, a privatised former HUDC estate on Marymount Road, launched its collective sale by tender on September 3, confirming a report by The Business Times in July.

Owners of the 358-unit residential development in the popular Bishan/Thomson area are said to be expecting offers in excess of $688 million minimum price, according to JLL, which has been appointed as the sole marketing agent.

The estate comprises three 16-storey apartment blocks and three low-rise blocks of six-storey maisonettes. Sitting on a prime plot of about 408,927sqft and zoned "residential" with a gross plot ratio (GPR) of 2.8 under the Master Plan 2014, the site could potentially yield about 1,100 plus units with an average size of 1,000sqft.

Tan Hong Boon, regional director of JLL's capital markets, added that the new project could likely be the tallest residential development within its one-kilometre radius, as the Master Plan provides for a building height of up to 36 storeys.

Mr Tan said the minimum price translates to a land rate of about $791psf ppr on the potential GFA, after adding an estimated differential premium of $218 million payable to the state to top up the lease to a fresh 99 years and for intensification of use, subject to approval from the relevant authorities.

"At this rate, the estimated breakeven cost for the successful purchaser should be around S$1,250 psf, with the new units expected to fetch between $1,400psf and $1,450psf. At the minimum price of $688 million, owners can look forward to receiving gross sales proceeds of at least $1.9 million per unit, or about 50% more than what they could obtain by selling their units individually," he said.http://www.sgproptalk.sg/2015/09/en-...nfu-ville.html

Record $1.33m for HUDC flat at Shunfu Road

http://www.stproperty.sg/articles-pr...u-road/a/97847

Whither The Fate Of HUDC?

http://thefinance.sg/2014/07/06/whit...-fate-of-hudc/

List of HUDC estates

http://www.teoalida.com/singapore/hudclist/