Shunfu HUDC sells for $1.28m

Shunfu HUDC sells for $1.28m

An HUDC maisonette in Bishan has been sold for a record $1.28 million, the Straits Times (ST) reported today.

This beats the $1.22 million record set last year by a 1,668 sq ft HUDC flat in the same area.

According to the Singapore Real Estate Exchange (SRX), which gathers and crunches data on property sales, the 1,680 sq ft Shunfu Road flat was sold for about $762 per sq ft in July this year.

At an average area of 1,650 sq ft, HUDC flats are typically bigger and more spacious than five-room HDB flats, which are 1,200 sq ft on average.

Accounting for 85 per cent of resale transactions in Singapore, SRX records show that most million-dollar HUDC flat sales from estates which are not yet privatised were from Shunfu Ville.

A property agent told ST that the HUDC flats there can fetch cash premiums of up to $100,000 above the flat's valuation.

HUDC flats can be attractive because of their larger size and more convenient locations. There is also a high chance that they can be privatised and sold to private developers in en-bloc sales.

A 618-unit estate in Farrer Court set a collective sale record of $1.36 billion in 2007. Each unit was given $2.1 million for that sale.

Out of the 18 HUDC estates in Singapore, 12 have been privatised.

They include Farrer Court, Amberville, Pine Grove, Lakeview, Waterfront View Estate, Chancery Court, Minton Rise, Laguna Park, Gillman Heights, Ivory Heights, Tampines Court, and Eunosville.

HUDC units have become quite limited since their construction stopped in 1987, when property prices declined.

The original HUDC units built in the 1970s were meant for middle-income families. All 18 projects had 99-year leases attached to them.

Privatisation began in 1995 to allow owners to gain control over their own homes.

At least 75 per cent of unit owners need to give their approval for privatisation to take place.

Once this occurs, leases are converted into strata titles and HDB restrictions on ownership will be removed.

The whole process takes about 2 and a half years to complete.

Of the 6 HUDC projects not yet privatised, five have managed to meet the 75 per cent approval requirement for privatisation.

These belong in the areas of Bishan, Hougang North N3, Hougang North N7, Serangoon North and Potong Pasir.

The remaining HUDC project is in Braddell View.

Though bought and sold like private property, HUDC flats come with HDB restrictions such as eligibility criteria.

A spokesperson from the Housing Board told ST that such high resale prices are exceptional and not the norm.

ljessica@sph.com.sg

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