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Singapore Property News

Potong Pasir HUDC estate goes private but 'price spikes unlikely'

THE Potong Pasir Avenue 1 HUDC estate was privatised yesterday, but analysts are not expecting a significant rise in prices for units there because of the cooling property market.

Posted on 02-Jul-2014
By: YEO SAM JO

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Potong Pasir HUDC estate goes private but 'price spikes unlikely'

THE Potong Pasir Avenue 1 HUDC estate was privatised yesterday, but analysts are not expecting a significant rise in prices for units there because of the cooling property market.

The Housing and Urban Development Company (HUDC) estate next to the Kallang River comprises 175 flats in Blocks 110 to 112. It was converted to strata-titled property under the Land Titles (Strata) Act, the Housing Board said in a statement.

"Usually HUDC flat owners can fetch a higher price with privatisation. The key incentive for the buyer is that one day the estate might be sold en bloc," said SLP International Property Consultants research head Nicholas Mak.

"But this estate has privatised at a time when the market is soft - demand is weaker and prices are also lower - so the jump in price may not be as much."

R'ST Research director Ong Kah Seng said that with privatisation, the estate's prices will "hold better" because of its en bloc and redevelopment potential.

But he said investors and buyers might hold back because of a "substantial increase in leasing competition". This is due to more residential projects launching in the area, such as upcoming condominiums Sennett Residence and Sant Ritz, and the impending Bidadari housing estate, he said.

This is the 17th of Singapore's 18 former public housing estates to go private, and the fourth since May this year. The last remaining HUDC estate, Braddell View, has already garnered the required 75 per cent support to proceed with privatisation.

The 18 HUDC estates were introduced from 1974 to meet the demand for homes from middle-income households priced out of private property. The scheme was phased out in 1987 when more housing choices were introduced.

Privatisation of HUDC estates was announced in 1995 to meet rising aspirations of Singaporeans to own private housing, and to enable owners to have more control over their estates.

By going private, the Potong Pasir Avenue 1 estate's common properties will no longer be maintained and managed by the Potong Pasir Town Council. Instead, the Management Corporation Strata Title (MCST) Plan No. 4010 has been constituted to do this.

Flat owners will also own their respective units, and have a share in common properties such as carparks and open landscaped areas.

Pro tem committee member and Block 110 resident Mathew Mathai told The Straits Times that an annual general meeting will be held by the end of September to elect the MCST members.

The 56-year-old marine manager added that a carpark barrier and fence are on the cards, but it will be left to the MCST to decide that in consultation with the residents.

"I would like to see a fence," said financial service consultant Linda Ng, 44, who lives in Block 110. "Right now a lot of strangers come in to use our carpark and resting tables and leave their litter behind."

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