Paul Ho
Our Chief Mortgage Consultant, Paul Ho talks about Selective Enbloc on 93.8, click play to hear it.
Is Selective En-bloc Redevelopment Scheme your LOTTERY Ticket?
Besides Toto, 4-D and going to the casinos which some people believe can make you rich, what other ways can you grow rich?
In case some of your have forgotten, it is EN-BLOC. In the case of HDB flats, it is called, Selective En-Bloc Redevelopment Scheme or “SERS”.
SERS is a scheme developed by the Singapore government to make Singaporeans rich, right? Actually no. It is a scheme where the Singapore Government can rejuvenate old estates and re-develop them. This usually happens in good locations where there is better economic value for moving HDB flats out and rezoning them for higher economic value.
Why it pays to buy Mature HDB Estates
Reason 1: Food is cheaper
First and foremost, the food is cheaper. Many of the hawker stalls or food centres were leased to hawkers at cheaper rate, hence the food is also cheaper.
Reason 2: Food is tastier
And many of these stalls have been around for 20 to 30 years. Any food stalls that can survive for 20 to 30 years, must be tasty, else they would have closed shop long ago.
Reason 3: You may strike Lottery from Selective En-bloc re-development and move to a new flat.
Reason 4: Most likely to be near Major bus routes and MRT.
Reason 5: Can be close to parents who are already staying there.
Downside to Selecting Mature HDB estates
Downside 1: Old building, old lifts. Old design. Old wiring. Creaking pipes.
Downside 2: Not enough vitality.
Downside 3: May not be easy to get Bank loan.
Downside 4: Cannot spend too much on decoration and renovation in case of En-bloc, which will render the renovation wasted.
Tanglin Halt
One of the oldest HDB estates in Singapore. HDB flat owners or lessees (because they only really rent it for 99 years), whichever way you intend to call them have struck lottery.
These are the blocks selected for SERS. Blocks 24 – 32, 33 – 38, 40 – 45, 55, 56, 58 – 60, and 62 – 66 of Tanglin Halt Road and Commonwealth Drive. These HDB home owners can look forward to moving into any of these 5 upcoming projects in Dawson estate. These replacement sites will offer over 3,700 new flats.
The sites are: –
Site A; Margaret Drive (with 1,217 units)
(Source: HDB)
Consisting of flat types
- 2-room (45m2)
- 3-room (60m2)
- 4-room (80m2)
- 4-room (85m2)
- 5-room (105 m2)
Site B: Margaret Drive (1,192 Units)
(Source: HDB)
Consisting of Flat types: –
- 2-room (45m2)
- 3-room (60m2)
- 4-room (80m2)
- 4-room (85m2)
- 5-room (105 m2)
Site C: Dawson Road (810 units)
(Source: HDB, estimated completion 3Q, 2020)
Consisting of Flat types: –
- 2-room (45m2)
- 3-room (60m2)
- 4-room (80m2)
- 4-room (85m2)
- 5-room (105 m2)
Site D: Dawson Road (242 units)
(Source: HDB)
Consisting of Flat types: –
- 3-room (60m2)
- 4-room (85m2)
- 5-room (105 m2)
Site E: Strathmore Avenue (247 units)
(Source: HDB)
Consisting of Flat types: –
- 2-room (45m2)
- 3-room (60m2)
- 4-room (80m2)
- 4-room (85m2)
How much do I get for my Tanglin Halt Flats?
Some people that I have spoken to say that they are getting compensated around $300,000 to $405,000 (depending whether they have an extra corner corridor) for their 3 room flat.
How much do I have to pay for my Replacement HDB flat?
Based on HDB’s website, the price of a new flat for Block 30, 3-room flat of 62 square meters, ranges from $320,100 (unit #07-202) to $358,000 (unit #44-206). The higher the more expensive.
Chart 1: Block 30, Margaret Drive, #44-206 price (09 Apr 2016), HDB, http://services2.hdb.gov.sg/webapp/BP13AWFlatAvail/BP13SEstateSummary?sel=SER
Map 1: Town Map, Dawson, HDB
How to select a good OLD HDB unit with En-bloc potential?
- An estate that is 30 to 40 years old or older.
- Near to city or on City fringe.
- Near to or within URA’s Masterplan zoning for future development.
- Near to major commercial buildings, or business parks that is already fully built-up.
- Big Price differential of a per-square-feet basis between HDB units and nearby units.
In Summary
The home owners of Tanglin Halt got compensated around $300,000 to $400,000 for their 3-room hdb flats, move into a new place nearby and pay around the same price for their new Hdb flats. This is not a great price, but at least it is fair.
Some older folks are unhappy. Actually a lot of the older folks are not hankering for the compensation or look forward to moving. They prefer to stay in Tanglin halt.
Who then is the biggest winner? Residents having a new flat or the Singapore government having a new piece of land which it can charge a higher price for the land? (A 3 room flat around 700 sq feet go for $300,000 to $400,000), let’s just say that on a per square foot basis, each is $500 to $600 psf. Buy these land cheap and rezone them into Private residential land or as an extension of JTC’s corridor of innovation with more business park.
Let’s just hope that the rents for the new Dawson estate hawker stalls will not rise by 200 to 300 percent in some other instances, so that hawkers do not have to raise prices and serve tasteless food.
Reference
SERS journey timeline
These are the main milestones for the SERS journey from Tanglin Halt estate to a new home in Dawson estate.
| S/No. | Milestone | Time Period |
| 1 | SERS announcement | 27 June 2014 |
| 2 | SERS exhibition | 30 June to 13 July 2014 |
| 3 | Flat valuation | 3Q2014 |
| 4 | Collector’s Inquiry | 3Q/ 4Q2014 |
| 5 | Compensation notice | Mid-2015 |
| 6 | Your rehousing choice | 3Q/ 4Q2015 |
| 7 | Registration for new flat | 3Q2015 |
| 8 | Selection of new flat | 1Q2016 |
| 9 | Key collection | 2020/ 2021 |
| 10 | Moving out | 2020/ 2021 |
| 11 | Welcome party | 2021/ 2022 |
