Braddell View’s attempt at collective sale recently had failed but this doesn’t seem to have dented the spirits of its owners.
They still remain positive about the prospects of the sale and expect to find a developer soon.
The Collective Sale attempt that was launched in March this year for a whopping $2.08 billion had closed on Tuesday (May 28) without seeing any bids.
It has been reported in the media since than the Collective Sale Committee is negotiating with the owners to make a second bid.
Interestingly the market for en blocs doesn’t seem to have the same kind of vibrancy and positivity as was seen before the cooling measures came into effect last July.
Braddell View covers an area of 1.14 million sq ft and is the largest residential site in Singapore.
The size of this estate has been a deterrent for most developers who aren’t willing to risk investing on a single site. It is a former HUDC site and presently has 918 units with 61 years remaining of its lease tenure.
Some of the residents expressed their disappointment on the lack of interest in the property.
One of the residents, former Executive Director at a food manufacturing company said that they are aware of the negative sentiments in the en bloc market but at the same time remain hopeful that this deal would materialise.
Another resident who has lived here for more than 30 years also expressed similar thoughts and said that residents are still hopeful.
With majority of the residents at Braddell View being retirees, they plan to move to smaller flats if the sale goes through.
Many had said that due to the age of the property, the maintenance costs have already gone up and this is expected to increase further if they are unable to find a buyer soon.
They also added that given the amount of wear and tear they would have to spend thousands of dollars to keep the property habitable.
Many also acknowledged that finding a condo with the same amount of space would burn a deep hole in their pocket.
The unit sizes at Braddell View range between 1,453 sq ft and 3,369 sq ft.
Alex Oh, Executive Director at OrangeTee doesn’t seem to see any bright light for this property and said that it is unlikely to find a bidder.
He added that collective sale market is nearly dead and new cooling measures have hit it hard.
The year 2019 is yet to see a residential project find a bidder. The mood in the market is complete contrast to the frenzy in the market last year where 35 residential en blocs transacted successfully in deals valued more than $10 billion.
This was a record high for more than a decade.
Mr Oh said that the reserve price for Braddell View has been set high and the risk proposition for the developer also increase given the price being asked by the owners.
He concluded by saying that he hopes the passive mood in the market is just a phase and not the end of the road for en blocs. With developers being selective, en bloc market might see a turnaround in the near future.