Sunday, September 6, 2009

Close neighbours seek en bloc sale


Source : Straits Times – 6th Sep 2009

They are close neighbours and their children play together every day.

Which is why the sellers in the latest en bloc initiative hope that a large family or extended families, rather than a developer, will pick up their four strata bungalows for $24 million to $26 million.

They sit on 24,443 sq ft of land in Bournemouth Road in Katong, one of the biggest plots in the area earmarked for detached houses.

‘It was a purely collective decision,’ said Mr Andy Kirpalani, 39, one of the three owners, on the move to cash in on the current property boom.

Originally called Sayang Villa, the gated compound used to be owned by a family with several siblings living in the four houses.

The current owners, all Singaporeans, did not know one another when they bought the units, each with a built-up area of 4,200 sq ft. They bought the houses between 21/2 and five years ago.

Mr Kirpalani owns two houses. His family – parents, wife, two daughters and two maids – live in one five-bedroom house.

The other is rented to an Australian expatriate family.

Another owner, a Chinese Singaporean who works in the financial industry, also lives there with his family.

The third owner, a local investment company run by an Indian Singaporean, has rented its house to a Swedish expatriate family.

There are seven children among the four families.

‘We’re like a mini United Nations here. The kids sleep over. We don’t even lock our doors sometimes,’ said Mr Kirpalani, director of an import-export business.

His wife manages their Indian fine-dining restaurant, Queen’s Tandoor, in Robertson Walk.

He has appointed Credo Real Estate, which specialises in en bloc sales, to handle the transaction.

Said Credo managing director Karamjit Singh: ‘It’s a modern-day kampung. The families get privacy as well as the benefits of living together.’

Strata bungalows, unlike conventional detached houses, share a common compound. At the peak of the property market in 2007, vacant land or that with old bungalows was sold for as high as $860 per sq ft (psf) to $1,000 psf.

If the owners get their asking price, it will amount to between $982 psf and $1,064 psf for the bungalows, which are under 10 years old. The tender closes on Oct 8.

Property analysts are divided over whether extended families will bite, given the sizeable price. But they agree that targeting families rather than developers is appropriate.

‘Redevelopment potential is not there if the houses are quite new. Usually, en bloc properties give the best benefit if the units are ageing, as their market value is already low,’ said Mr Colin Tan, research and consultancy director at Chesterton Suntec International.

The property could appeal to upgraders who live in semi-detached or terrace homes. Less likely, but not impossible, a millionaire could also snap up the place, tear down the four houses and build a mammoth mansion, he added.

The current property buzz has also seen another property in the area, the 23-year-old Marine Point, being put up for collective sale.

The asking price for the 32-unit apartment block, on a 61,183 sq ft freehold plot opposite Parkway Parade, is $120 million.

Meanwhile, Mr Kirpalani and his neighbours are shopping for new homes in the area so their children can still play together.

Why doesn’t he consider buying the other two houses for his extended family now?

‘If I could afford it, I would. It’s a monetary issue,’ he said with a laugh.


‘It’s a modern- day kampung. The families get privacy as well as the benefits of living together.’

Mr Karamjit Singh, MD of Credo Real Estate


No comments: