Why you should support this initiative:

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• Because this is an excellent way to monetize your property. You will receive a HUGE financial gain if you sell your unit through an en bloc sales exercise rather than selling it as an individual unit.

 

• Because Central Green is a 22 year old project. The value of your Central Green will decline rapidly after it become a 30 year property. Bank loan will be much more difficult to obtain resulting in fewer prospective buyers.

 

• Because there is no job security and you want a tidy amount in your bank account in case anything happen to your current income source.

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• Because you notice that you have not been using the condo facilities and don’t want to pay unnecessary condo maintenance fees and is happy to stay in a HDB or private apartment.

 

• Because “cash is king” in this uncertain economic times – terrorist activities, global political instabilities, etc. En bloc sales is the best way to unlock your asset so that you are poise for investment opportunities.

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What is your financial gains from en bloc sales?

It depends on a number of factors: your unit size, revised plot ratio, your replacement unit cost, etc.

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Based on: average unit size of 1,300 sq. ft., with a current market selling price of $1,200 psf, your unit can fetch $1.56 million.  

 

With an assumed en bloc sales premium of 50%, your unit might command $2.34 million.

 

Your financial gain is $780,000. (En bloc sales premium is the extra money you get through en bloc sales over sales of your individual unit.)

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Hence, en bloc sales is an excellent opportunity to unlock the value for your unit as:

• Your rental yield will drop as there are a number of relatively new condos in the vicinity competing with our Central Green which is more than 25 years old.

• Your capital gain could be diminishing. See: "Home prices may drop further in 2017" -http://www.propertyguru.com.sg/property-management-news/2017/1/143814/home-prices-may-drop-further-in-2017.

 

What’s next?

Do complete the following form so that together we can seek a meeting:

 

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We already has 78 owners who have completed the form. We need another 20 more owners to support this en bloc sales initiatives. Do act immediately as you have everything to gain and nothing to lose.

 

Please drop your completed ORIGINAL COPY at Block 1, #04-03 (c/o Jeya).  ​

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Frequently Asked Questions

 

"I don't want to sell because I can't find another property like Central Green".

We can include a term in our Sales Agreement that developer gives existing owner 1st right to buy property. If this is done, we can still enjoy the convenience that comes with the excellent location & Tiong Bahru amenities, stay in a brand new project plus a handsome financial windfall. Downside is that we have to stay somewhere else when construction is going on.

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Why don't we wait for the Central Green's Plot Ratio to go up before we work on the En Bloc Sales Exercise?

We do not know when the authorities will revise Central Green's plot ratio. However, we do not need to wait. The marketing consultant we appoint (after we formed the Collective Sale Committee) can appeal for a revised plot ratio for our properties. 

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Why are we doing this en bloc sales exercise when current property prices are down?

En bloc sales process takes time, maybe 2 - 3 years. If we wait for prices to go up, we may miss the boat as there will be a lot more competition.

 

Note, developers always buy land in anticipation of future infrastructural developments. 

• Central Green en bloc will be of great interest to developers as the authorities are building the Thomson-East Coast Line (TEL) which is expected to be completed by 2021.

• Outram Park station will be a brand new interchange station which will link the TEL with the North-South Line, North-East Line and the East-West Line. 

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• Since property prices are low, shouldn't we wait till prices have gone up to get a better sales valuation?

• What is the future outlook? What are the benefits of doing it now?

 

My following reply applies to both questions. Nobody can say for sure what will be the future outlook of the property market. I interpret the concerns as: we might not be able to benefit from better market outlook.

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Well, we can include a term in our sales agreement that allows the upward revision of the en bloc sales valuation should market outlook improve dramatically. Hence, current low property prices could be a non-issue.

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Input from Henry, a fellow owner @ Central Green supports my reply:

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OUE 'inks deal' to buy Grangeford

https://tinyurl.com/mo8ny98

The $1,810 psf ppr top price achieved for The Grangeford is the highest achieved on the island for a 99-year leasehold residential site. 

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What is noteworthy is that:

"The Grangeford's reserve price has been revised upwards several times since last year from $280 million in 2006 to $350 million in Q1 this year to $550 million when the latest expression of interest was launched in April. That exercise closed in late May attracting four bidders, who were invited to resubmit bids. OUE emerged as the highest bidder."

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Thanks again Henry for the input!

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How to Spot En-Bloc Potential in Singapore

https://blog.moneysmart.sg/property/how-to-spot-en-bloc-potential-in-singapore/

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The following 2 articles are posted for your reference:

Shunfu Ville en-bloc Sales - a Comparative Review

https://www.newlaunchenquiry.com/singapore-property-news/shunfu-ville-en-bloc-sales-a-comparative-review/     January 4, 2017

 

This particular collective sale netted $638 million when it was put up for sale last month. This is a form of windfall to individual owners in these en-bloc sales. Each of the owners received $1.782 million.

 

If this amount of money received is compared to what each owner will get if the sales were to be sold in units; it is clearly observed that they have gained 50% over the sale in single units. This indeed is a windfall for all the owners, a worthy take-away profit.

 

More collective sales in store next year

http://www.businesstimes.com.sg/real-estate/outlook-review-2016/more-collective-sales-in-store-next-year        November 28, 2016

 

According to Cushman & Wakefield, premiums in enbloc deals generally range between 20% and 30%, to as much as 50% or more if each unit were to be sold individually in the open market.