It has been a while since I last provided an update on the status of the en bloc process. In my last update in November of 2021, we had at that point secured 50% consent for the en bloc. As of today, I am pleased to update that Huttons, in their tireless efforts to reach out to as many owners here, has currently received 70% of the votes for an En Bloc.
This means that we have just 10% to go. This is hugely encouraging, and also represents a major milestone, because this means that at this stage, we have officially progressed further than our previous en bloc attempt in 2017, in which we ended the process with only 69% signatures on the collective sale agreement.
As of now, all we need is another 36 – 38 more units to sign on the agreement, and we’ll hit the 80% requirement to put our estate up on public sale.
I have to say, I’m pretty excited about this, and reaching this monumental milestone has definitely perked up the spirits of the residents here who are for the en bloc.
New Home Exhibitions
I’m extremely proud of the work and work rate of our appointed marketing agent, Huttons.
They have been listening extensively to all residents’ concerns, and have been meticulously putting them at ease with statistics, figures and patient conversations.
One of the biggest concerns of the residents has been regarding alternative homes. What are some of the property options out there, once we have sold our home?
And this is why Huttons have also kickstarted a new series of exhibitions, showing us a plethora of property options ranging from condos to landed properties, depending on the needs and requirements of the residents.
I think it’s also a good way to drum up some excitement. I for one, am always excited to move to a new place. Blame it on the adventurous Sagittarius spirit? The picture above shows my kid enthusiastically looking at properties like a real estate investor.
Why Sell Now?
One of the biggest reasons in advocating for a collective sale now, is that this is a really good time for us to sell. Why? Glad you asked.
Physical Deterioration
Our condominium is a 99 year leasehold property. It was completed in 1985, which means, of the 99 year lease, we have already run down 40 years (the lease began in 1982, when construction started). As such, it is absolutely normal for wear and tear to set in. A lot of our foundational piping is concealed, and any repairs will be cosmetic at best.
As things start breaking down, maintenance costs will increase.
Devaluation of Property
Aside from the physical deterioration of the estate, we’re also faced with a very real start of a gradual devaluation of the property, as the lease countdown hastens. We’re not seeing it now, probably due to the inflation of everything. But I believe over the next few years, if we don’t manage to get the en bloc done, we will see a decline in the rate of our property valuation increase in relation to other, younger estates.
10 years of construction hell
Our area has just been earmarked for infrastructure upgrading. And so, over the next decade, we will be facing lots of construction noises and dust, as a train station is going to be built right outside our estate. But wait, isn’t that good news?
Well, yes and no. Sure, we will benefit from the accessibility of having an MRT station right outside our doors, but that will be 10 years from now. Will the benefit of the MRT outweigh the lease top-up costs for developers further down the road? That’s a huge risk to undertake.
In the meantime, buyers and renters will probably stay away due to the huge construction project.
All in all, I believe this is a good time to sell, along with a pretty good reserve price that Huttons has provided. I will keep updating, and hopefully, the next update will be 80%!