Braddell View the largest of all HUDC, is planning to launch for a En Bloc Sale. This site consists of a 1.124 million square ft plot of land. Owners are potentially looking for a $2 billion-dollar price tag with over 918 units in development.
Braddell View is currently located within the Toa Payoh region and is the largest of 18 HUDC estates in Singapore.
Currently, Braddell View sits on a 2.1 plot ratio and has been privatized for only a few precious months.
Braddell View is more than likely to attract local and international bidders as other similar sites has proven to be major success stories in recent years. There’s also a real robust sales ethic for larger developmental plots and with future prospects fairly optimistic, it can spell only good news.
As a former HUDC estate, choosing the collective sale route might in fact be the most welcomed option for most residents and owners.
Even though it was privatized in March, owners want to keep moving forward and capitalize with an en bloc sale. The amount of en bloc sales have doubled in this year alone and it looks set to be more sales within the upcoming years also.
The Chairman of Management Corporation Strate Title, Alex Teo, said there is great hope the property will manage a $2 billion dollar or more, target.
If that price is achieved then it would see Pine Groves asking price of $1.65 billion dwarfed considerably in comparison. However, there are only 63 years remaining on the current 99-year lease which is a concern to say the least.
Developers must factor the lease into their development fees and total costs as it might be they have to pay for extending the lease. Furthermore, the sheer scale of the properties is truly massive.
With over a million-square ft to develop there are major challenges ahead for any developer who takes on the project. That alone might scare several potential developers off.
A survey was conducted in August this year and with the four hundred people who took part, 82% of them agreed a collective sale was in the best interest of the owners.
Mr. Teo concluded that with a $2 billion price, owners could get at least $2 million each for the sale of their home. That target price was actually very impressive but there are still some opposition to the planned sale, albeit, minimal.
One resident, Alice Liew, who has been at Braddell View for over thirty years and owns a 1,800 sq ft property, said, most residents fought hard for the privatization of the estate.
It was certainly a hard fought war but now it’s privatized, the goal now stands at selling en bloc which seems to be the trend for the current market.
Even though Mrs. Liew has been situated within her home for over three decades, she honestly believed now was the perfect time to sell especially since the estate has grown old in recent years.
There are however, great difficulties in developing Braddell View. This is two plots of land joined as one and as such, it covers a million square ft which is a mighty task for one developer alone.
There is also the consideration that if the property isn’t developed and sold off within five years, there will be a hefty sum of additional buyer stamp duty added. For developers, it’s a major risk they do not want to face simply because profit margins can be fine.
Developing the land and making a profit is possible but figures must be calculated first in order to see if there is room for profit and where.
This might also determine the actual asking price for an interested party and might not achieve the hopeful $2 billion dollars.
As such, a collective or two-man development project might be required in order to get the work done and to keep costs as low as possible. It’s a big plot of land and costs have to be reasonable for all interested parties.
Discussions must be carried out to see what plot ratio is suitable for developers. They have to focus solely on costs than ever before simply because if they want the properties to be finished to a high spec, the costs have to be right.
One researcher, Dr Lee Nai Jia, said the current market can only handle one large project so right now, there are sure to be a lot of challenges ahead. With the five-year selling point before duty is added, the difficulties keep on mounting.
It took literally 18 years to privatize Braddell View and a lot of work and patience went into that. Harmonizing all residents and ensuring the two separate leases of the two plots of land were in order.
The problem was it was so much work and the privatization has to be just right in order for residents to benefit from the process.
However, while Braddell View is an attractive plot for developers around the world, there are quite a few en bloc options available at this moment in time.
Yes, Braddell View is close to several MRT stations and it does have a great central location too but there are currently a lot of sites available and that’s the real issue here.
Normanton Park and Pine Grove are just two simple examples, but there are many more out there. Selling Braddell View will more likely come down to if and when the sales pitch is launched and how much developers are willing to pay.
Evidence shows there isn’t always plain sailing; in 2007, when the en bloc sales rush occurred, two high profile projects – the D’Leedon and Interlace projects – interested dozens of developers.
However, still today, there are several unsold units; and that right there is the overall risk of taking on such a large development site. Ideally, no units would be left unsold as it means a loss of revenue and more stamp duty.
There is always going to be the risk of having unsold units left, even after several years of the initial buying stage.
The idea of opting in the collective selling market has concerned some residents with many unsure if this is the right selling option. Most are now looking into the pros and cons of this adventure and whether it’s suitable for them at this moment in time.
- Central Location
- Caldecott MRT Station Close By
- Near Braddell MRT Station
- Potential Of 3000 Condo Units To Be Built Onsite
- 1.124 Million Sq Ft To Develop
- Access To many Good Schools In The Area
- Orchard Road A Short Drive Away
Braddell View is nicely placed especially since it has good rail and transport links such as the MRT and LRT rail stations close by.
The Braddell Station is only an eight-minute walk away from the condominium estate (0.55km) and Caldecott is a mere fourteen minutes (0.59km) away which is really impressive to say the least.
Marymount MRT station can be found 0.84km from Braddell View which offers residents another rail station option.
Within walking distance, coffee shops are aplenty with a wet market featured also. It is only a twenty-minute drive to the shopping and entertainment districts which is ideal for potential buyers.
Having Braddell View being so close to these areas will absolutely up its selling potential when the time comes.
Furthermore, Orchard Road is a short distance away and that is a central hub for entertainment and business.
The Pan Island Expressway can be used to access Braddell View which offers another great transport link.
Local schools Nearby includes St Joseph’s Institution, and the Australian International School. There is also the Global Indian International School 1.91km away and the San Adventist School. Other Schools close by are Marymount Convent School, Chij Primary and The Kheng Cheng School.
Braddell View looks set to be a major talking point for investors and developers around the world but that doesn’t mean it’s without problems. With a large site, a joint development project might be on the cards. Hopefully owners get a good asking price.