In May 2012, Ms Emmeline Ho's parents bought a studio apartment at the Sycamore Tree condominium in Joo Chiat, due to be completed by end-2016, on her recommendation.
Her parents, who are in their 60s and run a drinks stall at Old Airport Road Food Centre, invested most of their
life savings into the unit.
It is almost 350 sq ft and cost nearly $500,000. Since then,
Ms Ho, 34, who does administrative work in a finance company, has regretted her advice to them.
The project, which was supposed to obtain its Temporary Occupation Permit (TOP) by Dec 31, 2016, has been delayed.
"I had thought that since (the developer) is a Singapore-registered company, it should be one that I can trust," said Ms Ho.
"Almost every fortnight, we will go down to check on the construction. My parents are very anxious. This is their investment. It was going to be their source of income." Her parents had been hoping to rent out the unit.
Ms Ho's parents are among a small group who bought units in new projects that faced delays in completion.
Such cases are very uncommon, property lawyers tell The Straits Times, as developers typically have to complete by a certain deadline to avoid getting into trouble with their lenders.
They say developers also want to avoid compensating home buyers liquidated damages - which are calculated daily - for delays.
Ms Ho said she heard little from
Astoria Development over the cause of delay for Sycamore Tree, which has 96 residential units and 17 shop units, until June this year, when she received a letter.
In the letter seen by ST, Astoria wrote that the delay was due to changes in its construction methods and a dispute between the project's contractors over the installation of a mechanised carpark system.
On a visit last month, the project looked partially completed, with scaffolding and blue tarpaulin draped over much of the building.
Buyers at the
70-unit Laurel Tree condominium project in Hillview Terrace also face an uncertain future. Laurel Tree was also
due to obtain its TOP by December 2016, but construction has yet to be completed.
Buyers said the project's developer, Lerida, has not given any explanations for the delay.
Checks by ST showed that the project's main contractor, Bravo Building Construction, is facing a winding-up application by a creditor at the High Court this month.
This means it could be dissolved, and the developer might have to look for another main contractor to take over.
Hard to get updates from developers, say buyers
Accounting and Corporate Regulatory Authority checks found that
Astoria, Lerida and Bravo have the same company secretary and major shareholder.
Close to 40 Laurel Tree buyers have banded together to share information in a WhatsApp group.
Some buyers said Lerida had agreed to give monthly progress reports after a meeting in May, but has not done so since August.
A 40-year-old home buyer who works in sales said he has to continue renting a room for $500 a month while waiting for his 463 sq ft unit - his first property - to be completed.
He bought it in 2013 for about $600,000, and has since paid off about 60 per cent of the loan.
"I feel very frustrated and helpless," said the man who declined to be named.
The Urban Redevelopment Authority (URA) said the Controller of Housing - which administers regulations related to developers, among other property issues - has received feedback from several buyers on the Sycamore Tree and Laurel Tree projects.
A URA spokesman said it has asked the developers to update the buyers on the progress.
Laurel Tree home buyers said selling their units is not an option, as prospective buyers would want to inspect completed units. They might also incur losses if they sell now.
Real estate lawyer Subra M. Suppiah said that while the authorities might look into the issue, it is
ultimately between the buyers and developers, adding that buyers are the agreeing party in the contract after all.
"If the delay continues indefinitely, affected buyers might have to turn to the court to seek legal redress," he said.
Ms Ho said she has tried to get answers from Astoria and its law firm for over two years.
But one party would refer her to the other or to the letters they sent out, Ms Ho claimed. "I felt like a ball being bounced between the parties," she added.
Astoria's latest letter to Ms Ho on Sept 21 said the TOP would be obtained by end-December.
The management of Astoria, Lerida and Bravo have not responded to queries despite multiple attempts to reach them over three weeks.
These things because of the contracts and nature of the business have little hope. All developers for every single project register a new company and this will be the liable party and if it goes into liquidation, the developers assets and main company is protected and not the buyers.
The only things going for the buyers is that the developer has sunk cost from land leased or bought and need a return so eventually it will come thru. The other is the progress payments would have stopped.
https://www.straitstimes.com/singapore/courts-crime/no-end-in-sight-for-buyers-of-2-new-condos
