As you will be aware, the Sales Committee has resurfaced with a new draft contract. To sum up our opinion of it, if you have read it carefully, you will see that signing it will deprive you of all rights against them in the event of malfeasance or negligence on their part, and will also bind you to accept whatever price they decide, no matter how low it is i.e. the reserve price might as well no longer exist for any effect that it will have. Today, however, we wanted to remind ourselves, and any newcomers to Botanic Gardens View why we continue to think that selling this estate en-bloc is a bad idea for all those owners who are not short-term speculators merely out to make a profit at the expense of our long-term interests.
1 This is an absolutely unique site, We are next to the Botanic Gardens, next to a major hospital, five minutes from Orchard Road. None of us, however much we get in an en-bloc (and given the new draft collective sales contract, the Sale Committee obviously thinks that it won't be very much, which raises again the question of why they are so desperate to sell our property in the first place) is ever going to get a replacement with all these facilities. Do we think that any developer is going to give us a decent flat in any redevelopment? The experience of the unfortunate former inhabitants of Gilman Heights should tell you that this is a fantasy. We need to face the truth that wherever we go after this, it won't be in the centre of town, it won't have the best garden in Singapore on its doorstep and it won't have the size and good layout of our homes. Given the current bubbliness of the property market, a replacement of equal quality and convenience will probably cost more than the Sale Committee's price for Botanic Gardens View. This is the fundamental reason for us, and we think that it will be an important consideration for many others. If your answer (as ours is) to "Where will you go after being kicked out of Botanic Gardens View?" is "I don't know", it is something to take very seriously.
2 This is an absolutely unique site and there is no way that it is going to lose its value. Why should we let a developer get the benefit of its long-term capital value by selling now? This is a long-term investment. Those of us who are not professional short-term speculators do not need to be impressed by get-rich-quick fantasies. When the next genuine property upturn occurs, this will be the only major site left undeveloped on this side of Orchard Road.
3 We are honest, and admit that the uniqueness of this site also has drawbacks. There is no evidence whatsoever that the URA will lift the height restrictions on development on this site (because it is next to the Botanic Gardens). There is even a possibility that the restriction will be returned to its actual original authorised limit of four stories. This will limit the immediate value of the site to a developer in the present market, though in the long run, as the population rises, this will become less important. This is a further reason why we should think long-term and not be bullied or seduced into sudden decisions against our own interests.
4 We recognise that this development is old. However, we point out that there is no reason why it cannot continue to give good service if it is properly maintained, on a proper schedule. We are watching the MC carefully to ensure that it complies with its legal obligations to maintain the estate, so that the estate is not deliberately allowed to run down in order to force us out, as has happened with other developments.
So we hope that the above will be useful for everyone reading this blog and everyone interested in continuing to get the benefits of living in BGV. We wish everyone a Happy New Year, and hope that we will enjoy many more of them in BGV. As always, we reiterate our long-standing suggestion that anyone thinking of signing the draft collective sale agreement should get independent legal advice on how it affects their legal rights and obligations. We are of the view that its effect is entirely negative. But of course, there is absolutely no need to sign it, for the reasons given above.
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