Ge: Rp Checks Out Unhappiness Over Clementi Sers

[neubie 2]

The Temasek Review (TR) has learnt that an emergency meeting for affected residents of Clementi Avenue 5 (West Coast GRC) has been called today at 1600 hours over the planned forced SERS upgrading of Block 321, 322 and 323.

According to an affected resident, Block 321 – Block 323 has been shceduled for en bloc sale (back to HDB?) under the SERS upgrading scheme and affected residents were not consulted on.

The resident, who identified himself as Mr Tong said that they were merely informed of the planned en bloc and were not asked for their permission or opinion.

Mr Tong furthered that the affected residents were given a choice of “upgrading” to a flat of the same type (ie: 3-room to 3-room) or to a larger unit but the compensation monies given for their existing unit were low compared to the market rate.

“As such, those who choose to say, upgrade from a 3-room flat to a 3-room flat will get roughly $50,000 in cash compensation while those who wants a to upgrade from a 3-room flat to a 4-room or 5-room flat will need to fork out about $450,000 to make up for the differences”, he added.

Other residents this correspondent spoke to have expressed disbelieve at the ridiculous price of the new offered flats and the pathetic offer of about $50,000 for a one-to-one same unit “upgrade” compared to if they were to sell their flat in the open market.

The new3-room flats offered are also smaller in seze compared to the existing unit.

Mdm Tang, another angry resident of Clementi Avenue 5 for 30 years is pissed that the SERS upgrading was shoved down her throat without her permission nor any say in the matter.

Meanwhile, at a coffeeshop nearby, perturbed residents were heard uttering that come this election, they and their familes would vote for any pigs, dogs or cats the opposition party field over the People’s Action Party (PAP).

“These (PAP) government officials are not humans [不是人] and the present government has obviously lost its directions”, said Mdm Tang.

Mdm Tan said: “The government thinks we are old and useless, so easy to “eat” (translated from hokkien “jiat”)”, a sentiment shared by many at the coffeeshop.

It is understood that the affected residents will be holding an emergency meeting at the void deck of Block 322 at 1600 hours today to discuss this and hopefully get the relevant authorities to “listen”.

TR will update this article as and when new information are available.

SINGAPORE: A group of residents in Clementi have expressed unhappiness over the Selective En bloc Redevelopment Scheme (SERS) whereby the government identifies old blocks for redevelopment.

Some residents reached out to the Reform Party, which has plans to contest the wider West Coast GRC.

Reform Party secretary-general Kenneth Jeyaretnam said: "For sometime we've had a Facebook page for feedback from the residents of West Coast on local issues and basically it's exploded. We're receiving so much feedback.

"We were told by residents here about their unhappiness. So we've come down (here) and find out for ourselves what's wrong and why they're unhappy."

Despite the invitation, residents were surprised with the Reform Party's presence as they did not want to politicise the situation.

The meeting was attended by about 50 homeowners at Block 322, Clementi Avenue 5.

The meeting was organised by a group of homeowners to collect more feedback to support an appeal to the Housing and Development Board (HDB).

They voiced various concerns, ranging from the compensation package being insufficient to an unwillingness to relocate.

Some said that although the compensation being offered is higher than the current value of their flats, it is not enough to cover stamp duties, levies and renovation costs.

Some also expressed difficulty getting loans from banks due to their old age.

When contacted, the incumbent MP Arthur Fong said he has a sense that most of the residents are happy with the package and only about one out of 10 residents has concerns.

He said he has helped this group to write in to the HDB for it to consider more favourable packages and discounts.

A reply is expected within three to six weeks.

The government in February identified Blocks 321, 322 and 323 in Clementi Avenue 5 for the SERS.

The blocks are 34 years old and are made up of 374 sold flats.

The HDB will build about 500 units of new two-room, three-room, four-room and five-room replacement flats at Clementi Avenue 3 to re-house the flat owners.

These new flats are located next to the nearby Clementi Town Centre, Clementi MRT Station and bus interchange.

- CNA/ir

[gimz63251073 0]

Not sure what people are upset about...?

- compensation?

- being made to move?

I'm pretty sure they do not need to fork out $450k to upgrade. A 4room resale flat around that area cost like $600k with $50k COV, so total would be $650k. HDB prices new flats around the resale flat price but at at discount to SERS. Ignoring the discount, unless u tell me that a 3room flat is valued at $250k there?

I enquired about prices there like 1.5yrs ago, its roughly $300K for a mid floor corridor unit. i reckon its around 380k now.

So im quite sure there is a typo there.

Casting upgrades aside,changing from a 3room to another 3 room gets 50k compensation. Sounds like an ok deal for me if my flat is super old with no lifts:

- I would get to live in the same area, live on the other side of the MRT and closer to Clementi Mall

- 50k is enough for normal renovation and to pay for movers and maybe a new TV.

[marshmallow 0]

Not sure what people are upset about...?

- compensation?

- being made to move?

I'm pretty sure they do not need to fork out $450k to upgrade. A 4room resale flat around that area cost like $600k with $50k COV, so total would be $650k. HDB prices new flats around the resale flat price but at at discount to SERS. Ignoring the discount, unless u tell me that a 3room flat is valued at $250k there?

I enquired about prices there like 1.5yrs ago, its roughly $300K for a mid floor corridor unit. i reckon its around 380k now.

So im quite sure there is a typo there.

Casting upgrades aside,changing from a 3room to another 3 room gets 50k compensation. Sounds like an ok deal for me if my flat is super old with no lifts:

- I would get to live in the same area, live on the other side of the MRT and closer to Clementi Mall

- 50k is enough for normal renovation and to pay for movers and maybe a new TV.

you can check out the Clementi pple's thread on RT... they have discussed this high top up before, it's a problem esp for the old folks who don't expect to be paying housing loan anymore.

the newer resale 4-room in Clementi (those 45x series) is around $680k to $700k, 32x series should be around $460k for 4-room. these prices are about a year ago... 32x series 3-room around $350~370k 0.5 yr ago. so likely the new 4-room are price ~$700k++, new 3-room ~$450-500k.

in the article, they mentioned the top up is for upgrading from 3-room to 4 or 5-room, so top up of $450k is definitely possible.

the problem is that area a lot of older pple who are no longer working, so they really didn't expect this and dunno where to find the money to pay for the top up.

Edited April 25, 2011 by marshmallow

[gimz63251073 0]

hmm...? so i reckon the top up mentioned is for 3room upgrade to 5room. The example given by Marsh is around 250k for the diff between 3 and 4room.

Needless to say, the choice to upgrade would of course entail an upgrade of mortgage loan. So the main complaint is...?

Say given the resale market price difference of 3room and 5room is indeed 450k, buyers could have a choice not to upgrade unless HDB is not building enough 3rooms to satisfy the demand.

Given old folks who live alone with no income, why would they need a 5room? Should they stick to their 3room, (yes i know its effectively a downgrade of space) they would not need to take on additional loan.

[therat 18]

Quote from http://forum.channelnewsasia.com/viewtopic.php?p=4321909&sid=4e4fc0fabd5de478b197ee7626c4d352

i was there at blk 322 cos KJ posted it on his FB and I went down to see the revolt.

No it's not true, cos the prices are on HDB's website.

Estimated compensation: http://www101.hdb.gov.sg/hdbvsf/eampu200.n...ompensation.htm

Selling prices: http://www101.hdb.gov.sg/hdbvsf/eampu200.n...ellingprice.htm

Compensation

3rm 82 sqm: $402k - $454k

4rm 92sqm: $500k - $557k

Selling Price

3rm 67sqm: $316-$377k

4rm 85sqm: $413K-$491k

4rm 92sqm: $438 -$518

5rm 110sqm: $544k - $651k

So if I am a 3roomer with the top grossing flat (top floor etc), I get $454k. If I wanna buy a top grossing equivalent flat (4rm 85sqm), I have to pay $491k!!!

The only way to make money is if my flat is low floor and I also take a low floor replacement. Most SERS ppl like me wanna upgrade. Can you imagine if you live in a 4rm in Clementi and get the max compensation of $557k, wanna buy a 5rm, even the cheapest would be $544k!! Reno who pay? And that's for probably a 2nd floor flat above the garbage dump. A decent high floor flat would be $651k. Almost $100k extra!!! And this is not just the cream of the crop on 39 or 40th floor. When I kena enbloc, all of us above like 33rd floor paying the max price liao...

[gimz63251073 0]

Quote from http://forum.channelnewsasia.com/viewtopic.php?p=4321909&sid=4e4fc0fabd5de478b197ee7626c4d352

the links dun work....

*those that link to hdb website...*

Edited April 26, 2011 by gimz63251073

[HappyHouse88 0]

Let be realistic about these. The flats are old, the resale value of these flats will be close to nothing if there is no potential of enbloc. The very reason why ppl still buy these flats is hoping that it will enbloc and confirm tix to buy a new flat.

Long has buyer use this way to get ard the ballot system. And often then not, bought over old flat at ridiculous price.

Let's say this SER dont go thru, i think the residents will have more to lose as owners that bought in view of SER move out.

[marshmallow 0]

hmm...? so i reckon the top up mentioned is for 3room upgrade to 5room. The example given by Marsh is around 250k for the diff between 3 and 4room.

Needless to say, the choice to upgrade would of course entail an upgrade of mortgage loan. So the main complaint is...?

Say given the resale market price difference of 3room and 5room is indeed 450k, buyers could have a choice not to upgrade unless HDB is not building enough 3rooms to satisfy the demand.

Given old folks who live alone with no income, why would they need a 5room? Should they stick to their 3room, (yes i know its effectively a downgrade of space) they would not need to take on additional loan.

well i guess when they write in the news, they will write the maximum amount to capture pple's attention.....

the main focus on this case is, it highlights how expensive the new, subsidized flats have become. top up is almost always necessary for SERS even if you change back the same flat type, but the problem for this recent Clementi one is, the top up required for one to maintain an equivalent space and standard is so high that SERS has become something undesirable (no thanks to the high new flat price).

[HappyHouse88 0]

Given old folks who live alone with no income, why would they need a 5room? Should they stick to their 3room, (yes i know its effectively a downgrade of space) they would not need to take on additional loan.

Yeah.. actually, alot of the SER residents are there just to make $$. In any case, imagine they have new flats with a fresh 99yr lease. I think they need to realise they also need to pay for the top-up. In any case, they will be probably sells the new flats @ 100-200k profits after the MOP.

[therat 18]

the links dun work....

*those that link to hdb website...*

Ya. I also notice that.

[gimz63251073 0]

well i guess when they write in the news, they will write the maximum amount to capture pple's attention.....

the main focus on this case is, it highlights how expensive the new, subsidized flats have become. top up is almost always necessary for SERS even if you change back the same flat type, but the problem for this recent Clementi one is, the top up required for one to maintain an equivalent space and standard is so high that SERS has become something undesirable (no thanks to the high new flat price).

yeap i thought it was sensationalised by RP... haha

for most 3 rooms, its 68sqm for 3NG models. There are some, which are 82sqm. Or what my agent refers to as 3.5room. Now that new 4rooms are at 85sqm, they essentially have to "upgrade" to a 4room to maintain the same (or slight increment) living space.

i think for that group of people, they are facing a tough choice... SERS pays market rate for flats and sells at market rate, so i doubt there is any opportunity for profits after considering renovation and the hassle. (unless you downgrade). It would be in fact similar to you selling your flat in the resale market and buying a resale flat -> all at market prices.

The high price of new flats can only be attributed to the "resale prices of similar flats nearby". The 99 yr lease factor is ignored in valuing them. Should this factor be considered, prices of many flats will go downhill.

nonetheless, as you said, it highlights the problem of ever increasing flat prices which i am against as well though i techincally own a house now. A problem created by PAP, which apart from stout defending, they have no other solutions to.

[HappyHouse88 0]

The high price of new flats can only be attributed to the "resale prices of similar flats nearby". The 99 yr lease factor is ignored in valuing them. Should this factor be considered, prices of many flats will go downhill.

Our valuation process consider the last transacted price. Buyer choses to ignore the lease factor in hdb because they were assuming that eventually it will enbloc and bring in profit. Thus, it's not the system that ignore the lease but the owner/buyer of hdb.

[marshmallow 0]

yeap i thought it was sensationalised by RP... haha

for most 3 rooms, its 68sqm for 3NG models. There are some, which are 82sqm. Or what my agent refers to as 3.5room. Now that new 4rooms are at 85sqm, they essentially have to "upgrade" to a 4room to maintain the same (or slight increment) living space.

i think for that group of people, they are facing a tough choice... SERS pays market rate for flats and sells at market rate, so i doubt there is any opportunity for profits after considering renovation and the hassle. (unless you downgrade). It would be in fact similar to you selling your flat in the resale market and buying a resale flat -> all at market prices.

The high price of new flats can only be attributed to the "resale prices of similar flats nearby". The 99 yr lease factor is ignored in valuing them. Should this factor be considered, prices of many flats will go downhill.

nonetheless, as you said, it highlights the problem of ever increasing flat prices which i am against as well though i techincally own a house now. A problem created by PAP, which apart from stout defending, they have no other solutions to.

surely the element of sensationalizing is there....

yea like you, although i'm glad that i already have a roof over my head, i really feel for my friends who have not married, friends that have been balloting for 3, 4 yrs in vain while watching the price increasing day by day, and colleagues who are already saving $ for downpayment for their children that are in uni now~

[gimz63251073 0]

Our valuation process consider the last transacted price. Buyer choses to ignore the lease factor in hdb because they were assuming that eventually it will enbloc and bring in profit. Thus, it's not the system that ignore the lease but the owner/buyer of hdb.

but its "HDB appointed" valuer leh... *points my accusing finger at them again"... hahah...

[Jgal 0]

but its "HDB appointed" valuer leh... *points my accusing finger at them again"... hahah...

Yes and no.. it's still peg to last transacted price and never higher than that.