Archive for the 'Singapore HUDC' Category

Advantages of Privatization:

Privatization of HUDC estates was announced in 1995. Under the privatization exercise, lessees in a designated HUDC estate can convert their leases to strata titles, if at least 75% of the lessees support the exercise. Some advantages of privatization include:

? Conversion to a Strata Titles Estates –means that once Shunfu Ville HUDC has completed the privatization process and converted into strata titled estate under the Land Titles (Strata) Act, the estate will no longer be governed by the HUDC Housing Estates Act. This gives the owners more flexibility like:
- Fulfill aspirations of HUDC residents to upgrade flats to private properties
- Lift HDB’s restrictions on HUDC flats
- Owners can mortgage the flat with the banks for any emergency financial requirements.
- Owners can buy a HDB resale flat for owner-occupation.
- Owners can sublet the entire HUDC flat. No need to obtain HDB’s prior approval.
- HDB flat owners are allowed to buy the flats in Shunfu HUDC estate for investment.
- Owners will also be able to purchase a second property without being subjected to HDB’s regulations.
- No need to pay car parking to HDB

? Enhance the value of the Property – means Privatization enables the owners to have a better control over the management and improvement of the estate like:
- Individual owners of Shunfu Ville will own their respective strata units as well as the common property as tenants-in-common.
- Owners will be able to enjoy communal facilities.
- A higher level of privacy and security similar to condominium status, therefore putting us possibly at the same price levels as Lake View and Braddel View.
- Allow foreigners to buy our unit thereby increasing selling opportunities, increase demand and therefore give us opportunities to get a higher price when we sell.

? Potential for an enbloc sale – means this give owners of Shunfu Ville-HUDC an window of opportunity to achieve a high enbloc premium. The benefits of privatization can be seen in the goal of mounting a collective sale exercise. Owners can carry out a collective sale without the involvement of the various Ministries, which would simplify and expedite the whole process.