In March, the former-HUDC (Housing and Urban Development Company) estate Braddell View made their maiden en bloc attempt with a reserve price of $2.08 billion.
Braddell View owners hopeful about 2nd en bloc attempt
Despite the collective sale fever has died down, some Braddell View homeowners remain hopeful about the en bloc process. Many of its owners are retirees looking forward to downsizing and freeing up some monies for their retirement.
Braddell View was built the 1980s and has 61 years left on its lease. There are currently 918 units in the estate and some owners have lived in it for more than 30 years. Considering the age of the property, maintenance has become a cost which weighs on individual unit owners rather heavily.
Some have even estimated the cost per unit to come up to thousands of dollars.
Analysts, however, consider the size of the 1.14 million sq ft site a possible drawback as it increases the total quantum by a considerable amount. The cooling measures have also not made things easier as the collective sale market has cooled markedly since its fever pitch the last couple of years.
Developers purchasing residential properties for development must now pay a 5% non-remittable Additional Buyer’s Stamp Duty (ABSD).
Units at Braddell View of sizes which are now hard to find
As the population only increases in the years to come, property sizes are unlikely to become larger; or rather, space would become a luxury or at least an expensive commodity.
Some Braddell View owners are aware, despite their eagerness to sell their property in the collective sale market, that they are unlikely to find units sized like theirs in the future.
Average sizes of units at Braddell View range between 1,453 sq ft and 3,369 sq ft. Up to 2,620 new residential units with an average size of about 915 sqf could be built on the site.
The location of the site is, however, a good one, with its proximity to the Marymount MRT station, the Bishan estate and just a short train or bus ride away from the city centre. There are also a number of schools nearby including Raffles Junior College, Raffles Institution and Raffles Girls School; Catholic Primary and Secondary Schools and St Joseph’s Institution International.
With a number of sites in the market currently available to developers, how will Braddell View compare and will developers be willing to take the deep plunge?