Three HUDC estates in Hougang, Potong Pasir designated for privatisation

[James Ng]

Three HUDC estates in Hougang, Potong Pasir designated for privatisation

Three HUDC estates in Hougang, Potong Pasir designated for privatisation






SINGAPORE : The government has identified three HUDC estates for privatisation.
The estates are located at Hougang North Neighbourhood 3, Hougang North Neighbourhood 7, and Potong Pasir.
The Ministry of National Development (MND) said the three estates comprise a total of 797 of apartments and maisonettes.
Real estate agents said the news could affect prices of these properties, which may rise 5 to 7 per cent.
"With privatisation, everyone will be happy (because) the price will be higher if we intend to sell,’ said Steven Tan. The HUDC estate at Hougang Avenue 7 which he’s been living in has been put up for privatisation.
Property agents said prices could inch up overnight.
Recently transacted prices in the three estates range from S$620,000 to S$735,000.
"I won’t be surprise some will say if I were to sell you the unit, then I am giving up my opportunity to cash in more if this development go en bloc. We’ve heard of developments where once it is privatised, the prices there sometimes rocket by S$100,000," said Chris Koh, director of Dennis Wee Group.
Industry players said the en bloc potential for these HUDC estates is good because they are located in mature estates with more developed infrastructure and amenities.
The privatisation process could take up to two—and—a—half years.
But it will need support from three quarters of the residents.
Helen Lee, Protem Committee Member of Hougang Avenue 7 HUDC estate said: "The last time we did a survey in early 2009, more than 80 per cent of the residents were actually in favour of the privatisation. I think it shouldn’t be a problem getting the 75 per cent vote."
The residents of each estate will have to form a protem committee comprising resident representatives to act on their behalf.
One stumbling block could be the privatisation cost, which include legal and survey cost, as well as cost of land transfer.
The Ministry of National Development (MND) will cap the cost of privatisation at $30,000 per flat for the three newly—designated estates at Hougang and Potong Pasir.
The MND said this is a concession to enable HUDC lessees to fulfil their aspirations to enhance their assets.
The concession will also apply to the Serangoon North HUDC estate, which is in the process of obtaining a long delay of support from the residents for privatisation lead by the current protem committee leaders.
The capping of privatisation cost at $30,000 is only valid for three years, starting from 2 August 2010.
Thereafter, MND said the cost of privatisation will be adjusted to take into consideration the prevailing redevelopment potential of the land.
Observers said privatisation means flat owners will no longer be bound by some public housing rules like sub—letting, and they can sell or rent their homes to anyone.

[BenziT]

So is it "good" or "bad"

Say if I am a young couple. 2 kids My intention is to purchase a non private HUDC , wait for it to be privatized then wait for EN block ?

Good or bad ?

[jlrx]

So is it "good" or "bad"

Say if I am a young couple. 2 kids My intention is to purchase a non private HUDC , wait for it to be privatized then wait for EN block ?

Good or bad ?

Good.

..

[BenziT]

why good har ?

[devilplate]

ppty experts were saying tat HUDC prices cud worth 100k or more after privatisation....possible...in tat sense, pay $30k in exchange for 100k...gd deal

but to buy and hope for enbloc...duno leh...its a 99LH afterall....

[BenziT]

okok.. Thanks

[James Ng]

Look at Eunos and Shunfu HUDC estate, their resale price is more than $800K before 2nd phase of privatization. After they pay $30K, after privatization, their house value will go higher, probably more than $1.2 million if they enbloc or before enbloc. If Hougang and Potong Pasir can get 75% of YES votes from the residents, they can privatized, their unit will shot up, more than $800K same as Eunos and Shunfu HUDC estate. It is a good investment and a big house to stay, 1700 sq feet in size.

[Laguna]

For Eunos, hardly any seller, two weeks ago, one seller asking for 1.05m

[James Ng]

Come and buy Serangoon North HUDC, it is a PAP constiuency and last PAP estate to privatize. The resale price is about $600K and it is in the process of privatization, waiting to get 75% of YES votes from the residents. If you manage to get the unit at $600K, after privatization and you sell at $800K, you get an instant $200K profit without paying the $30K conversion fee by HDB.

[azeoprop]

Still remembered in the 80s, the hougang ave 7 hudc was launched for sale. The blocks were empty for quite a while after being built. We went to the open house, the interior conditions were rather bad with cracks and algae but the bedrooms and unit size were ultra huge!

[2824]

one word: Finally

[James Ng]

Wait till you see the HUDC estates are going for privatization, especially Serangoon North HUDC is having a dialogue session with their MP on 15/8/10 and they are encouraging the die hard residents to change their minds and go for privatization. HDB will increase their conversion fee of $30K after 2013, if the property market is good. So, there is no time to waste, all HUDC estate residents want to privatize asap.

[James Ng]

The MP dialogue session with the residents has helped the Serangoon North HUDC residents gain 72% support for privatization and they are near to the 75% YES votes for the estate to privatize.
This early privatization before 2013 will help the residents to pay $30K conversion fee. As after 2013, the conversion fee, $30K will be double or more. So the 3 other opposition constituency also need to privatize their HUDC estate before 2013. If the HUDC estate is privatized, their house value will increase more than $100K, comparable with Eunos and Shunfu HUDC estate which is about $880K. This 2 HUDC estates will be coming towards their 2nd phase of privatization and they are going to pay the $30K conversion fee soon. After the residents have pay the $30K conversion fee, they are consider as private estates and they entitle for en-bloc sale. The estimate amount per unit is $1.2 million if their en-bloc sale is successful.