The current apportionment does not take into account the premium of storey levels, facing or penthouse units in such a unique sea-fronting site. All unit prices are calculated based on Strata Area and Share Value only.
Apportionment can definitely be calculated otherwise, the current apportionment is biased against the higher sea-fronting and the penthouse units, resulting in these units incapable of obtaining a replacement property in the adjacent area.
As illustrated in the current Masterplan (Appendix 1), The Atria sits on one of the many high-end freehold sites along Meyer Road, forming a unique belt of single-loaded, high-rise residential properties with both sea and city views, making the location impossible to be duplicated elsewhere in Singapore. Along this unique belt, the older properties (such as Hawaii Tower, Casa Meyford and Meyer Park etc.) should not be considered as choices for replacement properties since their design and environments are inferior to that of The Atria. Furthermore, they may be subjected to en-bloc in the near future.
This leaves us with the newer developments such as Aalto, The Seafront at Meyer and The Belvedere. The current sale prices range from $1300psf (for the lower non sea-fronting units to as high as $3500psf (for some of the premium penthouses).
The current sale proceeds apportionment will definitely render the owners of higher-level sea-fronting units, especially the penthouse units, incapable of obtaining a comparable replacement property in the immediate area. Not to mention by the time the Collective Sale completes in 1-2 years, these property prices are bound to rise further. This likely scenario is shared by most past En-bloc exercises.
I have had an unfortunate close shave with en bloc not so long ago, when some agent came by offering to broker a sale by private treaty. What they did was to look into the latest transaction figures, monkeyed with some numbers so that those who bought high will not suffer a financial loss, instead with a financial gain, at the expense of the long time stayers. To make a long story short, there are many ways of apportioning proceeds. Some of these are found here:
ReplyDeletehttp://www.sisv.org.sg/Publications/Articles/Others/GL5-COLLECTSALE%20Rev3_Aug2009.pdf
Just curiously, how would you know that the Katong Park will be a MRT site? I checked URA and LTA websites, both did not indicate. Is this your personal view?
ReplyDeleteYou are right to say that URA and LTA have not indicated the locations of the 12 stations along the Eastern Region Line (21km long), which has been officially announced early 2008. Katong Park, as one of the possible station locations, is purely a personal opinion based on the following factors:
ReplyDelete1. The rough sketch of the ERL from the Official announcement.
2. Through the various opinions, discussion and guess-work in some of the blogs on ERL since its announcement.
3. The location of the several reserved sites and open area along Tanjong Rhu, Meyer and Amber area in the URA Master Plan 2008.
4. The current underpass locations that provide pedestrian links to East Coast Park and bus stops along Fort Road.
5. Observations of recent soil investigation activities at Katong Park.
6. An analysis of the possible locations on Google Map done on Singeo.com.sg 2 years ago, which has since been taken down.
In my opinion, if the Eastern Region Line were to be built eventually, it is likely to be along Tanjong Rhu and Meyer Road or along the Green Buffer Setback between the ECP and the high-rise residential blocks for the stretch of the ERL. The distance between a reserve site near the current Water Place Condo to the other near the Silver Sea Condo is about 3km and I believe that there will be at least 3 stations along this stretch. All in all, I am sure that the residents of the “Meyer Golden Strip” will be eventually served by MRT with a walking distance not more that 800m.
Below, are links associated with the ERL development:
http://www.channelnewsasia.com/stories/singaporelocalnews/view/324859/1/.html
http://www.skyscrapercity.com/showthread.php?t=1277217
http://www.iproperty.com.sg/news/1077/Singapore-East-region-development-blueprint
Hi,
ReplyDeleteI would like to ask why the property price in our prime 'District 15' estate is only around $1200psf when areas such as Balestier are already selling for much higher? How can The Atria be sitting on the 'Meyer Golden Strip' yet unable to fetch a higher price based on individual sale?
I am sure many owners have tried to sell their units privately but have not managed to fetch a good price. The only way to fetch a higher price is through a collective sale.
When the developer buys the land, they will level the land and rebuild, high floor units and sea facing units will not matter anymore.
I am also in a high floor unit and if my good neighbors living in the lower floors are willing to accept less so that I can get more, I will gladly accept! However, we all know this is impossible and unfair! Some of them could have purchased their units at the peak and their units might very well cost more than a 21st floor unit's at launch. Should they be asking for more than the 21st floor unit owners?? This debate will never end.
I am fed up with all the repairs and inconveniences of water pipe leakages, etc. All things considered, I decided that I was comfortable with the apportionment and I signed the CSA. I encourage all the owners who think like me to do the same.
I think the "soil investigations" at Kg Park u are referring to are excavations to unearth an 19th century British fort. These 'digs' have been there for some years.
ReplyDeleteBTW, I wonder why quite a number of owners were not present at the previous EOGMs, especially the one where voting for the apportionment formula took place. I can understand the sales comm's frustration at objections being raised only now when there were opportunities earlier to air one's views before the vote was taken. It does put them in a spot that cd have been avoided if owners had bothered to attend the earlier EOGMs.
The analysis is still this; the MRT station will be within 800m of The Atria. Why not wait for confirmation on station locations before we decide to sell? How much value do you think will be added to our estate?
ReplyDeleteThe various reasons owners don’t turn up for EOGMs may include:
1) They are unavailable/not in the country and/or they have been told to give proxies to save their trouble.
2) They do not support the en bloc and ignorantly think that boycotting is good enough.
3) They innocently think the en bloc will not happen, thus, no point in ‘wasting time’ to attend.
4) The marketing agents are telling/misleading owners who are ‘against’ the en bloc, into thinking that as long as they don’t attend and don’t sign the CSA, they are fine.
5) They have attended one or two EOGMs and voiced out issues, which have then been voted over by proxies. In frustration, they do not attend subsequent EOGMs.
There WERE objections during the apportionment EOGM.
People who attend EOGMs are generally inclined to sell. Add to that, the number of proxies held by the CSC, are often more than the turn-out, which makes the consensus at EOGMs ‘for’ the en bloc. Not forgetting ‘professionals’ like the agents, lawyers (who are not paid, unless the sale goes through) and en bloc raiders who do this for a living. Thus, dissenters may be bullied/intimidated/overwhelmed into submission. They attended, but were silenced; their objections were not even recorded in the minutes.
When an owner at Pearl Bank objected to the unfair apportionment, he was told by an agent, to his face that, “We are screwing you out of your share so the lower floors get more money and that is how we get 80% to sign”. There were 22 witnesses. Was the unfair apportionment on The Atria’s sales proceeds deliberate as well? Calculated to best acquire 80% consent?
I posted a comment on this topic but it was not published. I am on of the owners that is pro-enbloc and I stated my reasons. Why censor my post? Can't handle the truth?
ReplyDeleteYour comments were published. The blog is moderated, not censored. Everyone has reason to sell or otherwise. This blog was not created to dissuade anyone from selling their units; we only raise awareness for owners.
ReplyDeleteIs $1200psf referring to the whole of District 15? The Seafront sells at $1900psf and Alto sells at $2100psf. The real question is, what is the intrinsic value? How much would we need to pay to get an equivalent replacement home 2 years from now?
Marketing agents keep two sets of books: a proposal for sellers, and, a proposal for buyers. Agents will not reveal the true Residual Land Value to sellers:
(a) Projected Average Sale Price in 3 years time : $2500psf
(b) Construction Cost : $350psf
(c) Development Charge : $150psf
(d) Developer Profit (incl bank interest and overheads) : $500psf = 20% x (a)
(e) Residual Land Value in psf : $1500psf = (a) - (b) - (c) - (d)
(f) Maximum allowable GFA @ new plot ratio 2.8 : 3655949sqft
(g) Residual Land Value (Approx) : $548 mil = (e) x (f)
Bear in mind, the RLV is the current value of your home. It will continue to rise when the market improves, especially with the announcement of the MRT stations and completion of Sports Hub, etc.
We would also like to point out that, with the excellent state of The Atria and it’s facilities, there should be premiums (easily another $40mil) added to the Reserve Price, as the developer/buyer can choose to retain the building for rental income, to cover their investment’s interest while waiting for the best time to launch the redevelopment.
What it means is this; the current reserve price of 500mil is too low. We are shortchanged 17.6%
Apportionment can definitely be calculated otherwise; even the SISV states this, so why should the current apportionment be accepted?
But the best examples of successful en bloc today, will be the case of Paterson Lodge (Paterson Linc), where the Original owners were given one-for-one exchange.
http://lushhomemedia.wordpress.com/2007/07/19/paterson-lodge’s-answer-to-en-bloc-blues/
first time commenting. just testing if i do it right.
ReplyDeleteSigning the CSA is such an important and irrevocable decision. Please do not rush. We still have time to find out the true facts and think through this carefully. Thanks for creating this blog. It must be very time consuming to do so much research. We need this forum where we can find information not given to us so far, to discuss and raise questions. But anyone who wants to have a say should have some basic courtesy, and not be rude and aggressive.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeletePlease see the post on ‘What you stand to lose if you sign the CSA’, 9 April 2011, pertaining to the Paterson Lodge 1-for-1 exchange.
ReplyDeleteWe tried to address some of your concerns in that post, hope it helps.
A comment was deleted accidentally, do repost if desired.
ReplyDeleteI think everyone has some knowledge of past enbloc sales processes in singapore, and when it comes to dealings between the committees and owners, there is misinformation at best and bullying at its worst. I can sense it happening here already in this sale, and I think too many enbloc sales in the past have been unnecessarily controversial.
ReplyDeleteI would not put my hard-earned assets in the hands of people who don't give the full facts, so as owners we have to understand the facts ourselves before we decide to sign or not.
i am a owner of a unit on the 9th floor. i have not really be very inovle in the process. however, i would assume that i would be classified as a 'lower floor '. i did not buy at a low price . i would like to ask atria-enbloc who i gather is the orignator of this blog to 'fight' the current on-goings on what he would deemed fair and equitable apportionment.? a rough idea would do on how YOU would apportion so that a low-floor, sea facing owner like myself would feel fair.
ReplyDelete1. The best and fairest option is to replace the property 1-4-1. This ensures everyone, a home, in the respective storey and facing, as in the case of Paterson Lodge. Investors may choose to sell their new units.
ReplyDelete2. According to the SISV Valuation Guidelines on collective sales, the apportionment method can include the valuation of individual units, taking into account, the unit sizes, orientation and storey/level.
3. From another angle, we can assume that all owners will only agree to an en bloc, if everyone was able to get a comparable replacement in the same location. Otherwise, it would be as good as downgrading/downsizing. In the case of The Atria, a unique sea-fronting freehold prime site, we need to explore other apportionment methods, because with the current apportionment, not everyone can get a replacement property when our new neighbor, The Seafront or Aalto’s price is already as high as $2500psf (even more for certain premium penthouses), depending on levels and facing.
4. We also question the CSC's (which is supposed to act on Good Faith for all owners) decision to adopt the current CSA, when they repeatedly mentioned in the 4th EOGM that the "Collective Sale initiative aims to benefit (only) 80% of the owners' financially".
5. We would also like to mention that our position is not only fairness, but also that now, is not the time to sell, with the building being young, with the immature en bloc law and possible increase in value in the near future.
may i know what will a 1615sqft unit get from the proceeds.
ReplyDelete