Paying off 358 owners and building over 1,000 new units

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News from Great news for 358 owners of residential units in Shunfu Ville in Singapore. Everyone of them would get an average payout of about S$1.78 million. This is because a Chinese property developer Qingjian Realty will be entering into a sales and purchase agreement with the homeowners of Shunfu Ville. Shun Ville was recently privatised in 2013 and it was built in the late 1980s by the former Housing & Urban Development Company (HUDC). This is the third biggest collective sale by total value, behind Farrer Court and Leedon Heights, which were sold in 2007 for $1.34 billion and $835 million respectively, reported The Straits Times.

shunfuvilleGood news for Qingjian because 80 percent of the owners have signed the collective sale agreement which meant the deal is through. The site has an estimated gross floor area of over 100,000 sq m and expected plot ratio of 2.8 (subject to approval by authorities). Qingjian’s General Manager Li Jun said, “We hope to be able to build over 1,000 homes at this site, and given the long-term popularity of the Bishan-Thomson area, we believe that the market will welcome them.” The site is close to the Marymount, Bishan and future Upper Thomson MRT stations, while established schools like Ai Tong School and Raffles Institution are also nearby.

10 years down the road if Malaysia have similar sets of regulations, I think many older condominiums in very prime areas can also be a similar target for these developers. Truth is, many younger buyers love certain hotspots but they may not be receptive to buying a condo with a design of 15 or 20 years ago. Even the swimming pool is not attractive anymore while the gym,if still working fully would already be looking extremely worn out. Plus, these hotspots command a high premium making the deal easier. Even paying 50 percent above the market rate is already extremely attractive and the developers can then build 2 times more units especially when they can now builder higher. Yes, of course approvals for a higher density is needed but this would not be the main obstacle because the approvals for newer condos are already at a higher plot ratio than previously. Well, I hope it happens so that I can continue to view ever newer show houses. Happy waiting and buying.

written on 25 May 2016

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