Nearby Replacement Unit Values

We do the homework so you don't have to! In the CBRE presentation, some estates were named as viable replacement homes for those wishing to use your 'windfall' to buy a unit nearby. Let's look at those estates suggested:

One Jervois

• TOP Dec 2014. Means it won't even be ready should the en bloc succeed (along with 6 years rental to wait for it!)

Waterfall Gardens

• TOP Dec 2010. Won't be ready should en bloc succeed. 2.5 years rental required.
• Estimated average increase in unit value = $60+ per month
• Assuming increase is constant, a 2196 sqf unit will be worth approx $2700psf by completion or $5.9m.
• Units are therefore OUT OF REACH price wise
  

Grange Residences

• TOP 2004. Units are available now.
• Estimated average increase in unit value = $70+ per month
• Assuming increase is constant, a 2487 sqf unit will be worth approx $3400psf by completion or $8.4m.
• No smaller sized units are possible in this development.
• Units are therefore OUT OF REACH price wise
  

The Equatorial

• TOP 2002. Some units are available now.
• Estimated average increase in unit value = $65+ per month
• Assuming increase is constant, a 1722 sqf unit will be worth approx $2340psf by completion or $4.0m.
• That means you will not have anything left over, or may have to top up.

Regency Park

• TOP 1990. En bloc potential which means you may have to move again.
• Estimated average increase in unit value = $80+ per month
• Assuming increase is constant, a 2250 sqf unit will be worth approx $3000psf by completion or $6.7m
• No smaller sized units are possible in this development
• Units are OUT OF REACH price wise
  

Fontana Heights

• TOP 1985. En bloc potential which means you have to move again.
• Estimated average increase in unit value = $61+ per month (with $1950psf asking due to speculation)
• Assuming increase is constant, a 3466sqf unit will be worth approx $2560psf by completion or $8.9m
• No smaller sized units are possible in this development
• Units are OUT OF REACH price wise
  

This is not including the others in the CBRE list, or the nearby estate like 8 Napier with its $4000psf asking price NOW.

So out of these properties, when you take into account the fact that replacement values are not the prices NOW but 11+ months or more later, most will be out of reach.

If you think the picture described above is too bullish, today's Straits Times and Business Times both reported that economists are projecting strong growth this year and 2008, particularly in the construction industry where our buyers will be from. This despite stock market and export problems. Likewise, a noted property director said in yesterday's Business Times that the fundamentals in the property market are still strong, with most BGV owners still hitting the undersupply situation by 2008 (you will have to compete with other en bloc owners for replacement homes). This will definitely inflate prices in the prime districts, as people capitalise on the supply shortage and the huge demand generated from en bloc millionaires (just think of the owners of 1362 Farrer Court/Leedon Heights/Tulip Gardens/Spanish Village units alone who will be looking for replacement homes as well in 2008, possibly at the same time as all of us).

It isn't simply a matter of how much money you're getting now, for those who are home owners. It's a question of whether you can find a suitable replacement home in the near future, should you agree to sell BGV now.

Tags: Botanic Gardens View, Taman Serasi, Botanic Gardens Mansion, en bloc, en-bloc, en-bloc sale, enbloc, enbloc sale, collective sale, collective sales