Chitchat Good news! Enbloc market is stirring again

Shunfu Ville sold for $638m to Qingjian, each owner to pocket $1.78m

SINGAPORE - Shunfu Ville was sold for S$638 million on Thursday (May 19), marking the third largest en bloc by quantum here.

Each owner of the 358-unit condo, which lies less than 200 metres from Marymount MRT Station, stands to get around S$1.78 million.

It is buyer Qingjian Realty's first en bloc purchase in Singapore since it began developing projects in Singapore eight years ago, and it succeeded with an offer that was below the reserve price of S$688 million.

The 358-unit project was first put on sale in September with an asking price of at least $688 million or $791 per sq ft (psf) per plot ratio. The tender closed last October with no formal bids but two letters of interest. It was relaunched for tender at the same price in late January.

The last collective sales of this scale were of the former Farrer Court for about S$1.34 billion and former Leedon Heights for S$835 million, both in 2007.

Shunfu Ville, built in the late 1980s by the former Housing and Urban Development Company (HUDC) and privatised in 2013, sits on a 408,927 sq ft site with about 70 years left on its lease and a plot ratio of 2.8.

The site can yield about 1,100 units with an average size of 1,000 sq ft, while break-even cost could be about S$1,250 psf, with new units fetching S$1,400 to S$1,500 psf, marketing agency JLL said.

Property consultants said Qingjian's bid was a sign of returning interest in en bloc opportunities owing to limited land banks on offer here, especially as the Government had cut back on its land sales programme.

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https://m.facebook.com/story.php?story_fbid=10153504352067115&id=129011692114

Below reserve price, surely can sell lah. Also means that sellers know that market is sinking fast.

xebay11 said:

Below reserve price, surely can sell lah. Also means that sellers know that market is sinking fast.

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Read, the sellers are once again made to pay like a bloody fool to the government.....they have to pay extra millions divided amongst them for conversion of........ who is making the most money out of this en bloc sale?.....in the first place, what was the purpose of HUDC??

halsey02 said:

Read, the sellers are once again made to pay like a bloody fool to the government.....they have to pay extra millions divided amongst them for conversion of........ who is making the most money out of this en bloc sale?.....in the first place, what was the purpose of HUDC??

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If the sellers are getting a bad deal, then most of them wouldn't have agreed to the en-bloc. So clearly the sellers are laughing their way to the bank.

Qingjian reality should have tabled a price like $400 per sq ft

JohnTan said:

If the sellers are getting a bad deal, then most of them wouldn't have agreed to the en-bloc. So clearly the sellers are laughing their way to the bank.

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It was not such a bad deal.....it was bad dealing with these people.....at 1.7m you less all the taxes, how much you think, will be left?...unless you are leaving the country with that money & say settle in Philippines....that is a damn good deal, but, 1.7m less....you place in FD...how much return can you get, or say you buy the nearest housing....around there.....Taman Permata , 1.+ million, cannot even get you a house there....

halsey02 said:

It was not such a bad deal.....it was bad dealing with these people.....at 1.7m you less all the taxes, how much you think, will be left?...unless you are leaving the country with that money & say settle in Philippines....that is a damn good deal, but, 1.7m less....you place in FD...how much return can you get, or say you buy the nearest housing....around there.....Taman Permata , 1.+ million, cannot even get you a house there....

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True. 1.7 million does not sound like a lot if you are planning to stay in SG.

Satyr said:

True. 1.7 million does not sound like a lot if you are planning to stay in SG.

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Yes...with 1+ million, can't buy you anything much around those parts, even any of the flats from the 3 blocks of flats at Lakeview Rd....in 1980, if you could afford to apply for Shufuville....the houses nearest at Taman Permata would be around $300,000 & interest rate for FD would be around 6-7%..... $300,000 you place in FD today, you get?....from 0.1% to the best 1.8%...

The point is......1.7 million....is 'bird feed'....

halsey02 said:

Yes...with 1+ million, can't buy you anything much around those parts, even any of the flats from the 3 blocks of flats at Lakeview Rd....in 1980, if you could afford to apply for Shufuville....the houses nearest at Taman Permata would be around $300,000 & interest rate for FD would be around 6-7%..... $300,000 you place in FD today, you get?....from 0.1% to the best 1.8%...

The point is......1.7 million....is 'bird feed'....

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Can buy lah but smaller condos and further away. Or if they downgrade to HDB can even pocket a big difference.

ginfreely said:

Can buy lah but smaller condos and further away. Or if they downgrade to HDB can even pocket a big difference.

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$1.7m can buy pretty decent surban condo with Reno monies thrown in!

halsey02 said:

Yes...with 1+ million, can't buy you anything much around those parts, even any of the flats from the 3 blocks of flats at Lakeview Rd....in 1980, if you could afford to apply for Shufuville....the houses nearest at Taman Permata would be around $300,000 & interest rate for FD would be around 6-7%..... $300,000 you place in FD today, you get?....from 0.1% to the best 1.8%...

The point is......1.7 million....is 'bird feed'....

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The residents probably got their apartments at around $500k. They get $1.7M from en-bloc. After buying a new HDB apartment for about $0.5M, they probably will have about $0.6M left after other relocation and renovation expenses. The residents are laughing their way to the bank. That's how en-bloc works and why many sinkies have been trying to find old condos to invest in, hoping to get it en-bloc in a couple of years' time.

Shunfu Villa is just across the road from some terrace homes that was acquired by the gov't for a new highway.

If they are going to build the highway then it is going to be a really noisy neighbourhood. Just another project to boost the GNP at the cost of more construction

johnny333 said:

Shunfu Villa is just across the road from some terrace homes that was acquired by the gov't for a new highway.

If they are going to build the highway then it is going to be a really noisy neighbourhood. Just another project to boost the GNP at the cost of more construction

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The row of terrace houses, did they get the value they wanted...there were some grumblings.....the highway is underground, the area around there is already congested of late, due to the Thomson MRT Line...with the upcoming underground highway project....Thomson Rd., Upper Thomson Rd, Marymount Road, Braddell Road, Ang Mo Kio Ave 1 & CTE going see massive jams at rush hours..

No need rush hours, recently for some movement of heavy vehicles at the MRT site near Thomson Plaza....it took me, 45 minutes in the bus fro, Sing Ming Avenue junction to Sing Ming Road Junction & that was no even rush hour...

JohnTan said:

The residents probably got their apartments at around $500k. They get $1.7M from en-bloc. After buying a new HDB apartment for about $0.5M, they probably will have about $0.6M left after other relocation and renovation expenses. The residents are laughing their way to the bank. That's how en-bloc works and why many sinkies have been trying to find old condos to invest in, hoping to get it en-bloc in a couple of years' time.

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If they had got the flats from HUDC in the late 1970's....it would be around $135,000 to $180,000, they would have paid off their loans from HDB in around 2010 thereabouts....it is worth it at 1.7m....but buying another....1.7m is little in today's value...

halsey02 said:

The row of terrace houses, did they get the value they wanted...there were some grumblings.....the highway is underground, the area around there is already congested of late, due to the Thomson MRT Line...with the upcoming underground highway project....Thomson Rd., Upper Thomson Rd, Marymount Road, Braddell Road, Ang Mo Kio Ave 1 & CTE going see massive jams at rush hours..

No need rush hours, recently for some movement of heavy vehicles at the MRT site near Thomson Plaza....it took me, 45 minutes in the bus fro, Sing Ming Avenue junction to Sing Ming Road Junction & that was no even rush hour...

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Traffic congestion due to construction is now part of life in Spore. Don't forget about the problem with mosquito breeding that it also causes
With so many things being built underground I worry about a collapse

Only have to look at our MRT failures to see that things are going wrong with the construction in Spore. Such a problem did occur when they were digging the tunnel at Nichol Highway where 1 person died. However the area around the Thomson/Shunfu area is more congested & if there is an accident many are going to get hurt.

enterprise2 said:

$1.7m can buy pretty decent surban condo with Reno monies thrown in!

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Yeah can even buy upto a four bedder in toa payoh on 27 may..

"A one-bedroom apartment would cost $578,000 to $741,000, for a two-bedder $750,000 to about $1.16 million, and $1.22 million to $1.56 million for a three-bedder.

Prices for larger apartments such as the four-bedders go from $1.66 million to $1.82 million, while the five-room units cost between $1.75 million and $1.91 million."

http://www.straitstimes.com/business/strong-interest-in-gem-residences-in-toa-payoh

johnny333 said:

Shunfu Villa is just across the road from some terrace homes that was acquired by the gov't for a new highway.

If they are going to build the highway then it is going to be a really noisy neighbourhood. Just another project to boost the GNP at the cost of more construction

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No wonder I read the Chinese newspaper over weekend interviewed a few owners and all very happy with the enbloc, saying will be good for their retirement. One even said the land is currently only made used by 300 plus owners, with the redevelopment can be enjoyed by 1000 owners. Lol.

halsey02 said:

If they had got the flats from HUDC in the late 1970's....it would be around $135,000 to $180,000, they would have paid off their loans from HDB in around 2010 thereabouts....it is worth it at 1.7m....but buying another....1.7m is little in today's value...

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No need so long lah. These people who bought hudc in 80s are usually graduates or middle income people. My friend bought her hudc for two hundred plus or three hundred plus thousands can pay off their loan in ten years or less with double income.

halsey02 said:

It was not such a bad deal.....it was bad dealing with these people.....at 1.7m you less all the taxes, how much you think, will be left?...unless you are leaving the country with that money & say settle in Philippines....that is a damn good deal, but, 1.7m less....you place in FD...how much return can you get, or say you buy the nearest housing....around there.....Taman Permata , 1.+ million, cannot even get you a house there....

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Capital gains are not taxable in Singapore unless you are trading in properties.