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Braddell View fails to sell en bloc

This article is more than 12 months old

Buyers deterred by size and property cooling measures as en bloc attempt fails

Some Braddell View homeowners are shrugging off their failed collective sale attempt, though they remain hopeful that developers will eventually bite.

The attempt, launched in March at a reserve price of $2.08 billion, closed on Tuesday without any bids.

The Business Times reported yesterday that the collective sale committee may make another attempt, even as the collective sale cycle appears to have run out of steam.

The size of Singapore's largest private residential site - 1.14 million sq ft - has been cited as a deterrent for developers, along with cooling measures put in place last year.

The former Housing and Urban Development Company estate has 918 units and 61 years left on its lease.

Mr Lee Han Loh, 67, said he was disappointed in the lack of interest.

"Acknowledging that the current market is not bullish, we remain hopeful that the en bloc sale will eventually materialise," said the retired executive director of a food manufacturing company.

"Many residents here are retirees, so if it sells, we can buy a smaller flat," said Mr Steven Tan, 67, a retired manager who has lived in the estate for more than 30 years.

Maintenance costs for the ageing estate will likely go up if it does not sell soon, said homeowners.

Said retiree Peter Teo: "If we stay, every unit will probably have to put up thousands... there is a lot of wear and tear.''

Still, finding a new condominium unit that offers as much space will be impossible without "paying through the nose", said Mr Teo, 78.

The size of a residential unit at Braddell View ranges from 1,453 sq ft to 3,369 sq ft.

OrangeTee executive director Alex Oh said he is not optimistic that the estate will find a buyer. "Since the cooling measures, there has been nothing. En bloc is dead," he said.

No residential project has achieved a successful outcome so far this year. This comes after collective sales notched a blockbuster performance last year, with 35 residential deals valued at more than $10 billion, the highest in more than a decade.

A non-remittable additional buyer's stamp duty of 5 per cent for developers purchasing residential properties for housing development was among the cooling measures introduced in July last year.

Braddell View's reserve price is around the going rate or a tad higher, "but with the cooling measures, the penalty is too hefty for anyone to be willing to take up such a development given its sheer size", said Mr Oh.

"Hopefully the current en bloc cycle is just on pause, not at the end. People are still buying, just selectively because there are more choices now," he said.