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Most residents of Clementi Park are not willing to trade their idyllic homes for less than the ideal price

Tension is brewing in the sprawling Clementi Park housing estate as en-bloc fever threatens to pit a group of would-be sellers against the majority of residents — many elderly — who want to remain living on the one-million-square-feet freehold property.

At the heart of the row, as always, is the question of the value of the estate — and what price will tempt the residents to sell.

Posters announcing the intention of the en bloc group, which went up around the estate recently, have been surreptitiously removed, probably by those who are against any move to sell the property.

“I want to spend the rest of my life in this place, which has been my home for the last 20 years. It’s spacious and the surroundings are idyllic,” said a retired civil servant in his 70s. He was not in dire need of cash, he said, and would only consider selling if the price was right.

But in reality, he would prefer to stay put in his 2,500-sq-ft apartment, which he bought at $320 psf about seven years ago, after moving from a smaller apartment in the same estate for which he paid $260 psf in the mid-1980s.

An en-bloc sale of 30-year-old Clementi Park — which is made up of 491 apartments — could fetch $750 million which would translate to about $600 to $700 psf, according to property agents. But “it’s a laughable amount”, one resident said, when asked if it was an attractive price.

Housing agent Susan Ye, who has also been living in Clementi Park for about 20 years, says that a 2,500-sq-ft apartment could be sold en bloc for $1.5 million, about $200,000 above what it would have fetched if sold individually. That is not considered a handsome premium in today’s market, say experts.

And with prices for property rising rapidly, Clementi Park residents would be hard pressed to find alternative accommodation, at the same size and in a similar locality, with comparable amenities such as a gym, swimming pool and tennis courts.

Besides, Clementi Park is perhaps the only locality in Singapore with half of the land comprising rolling hills, a wonderful place for jogging, residents told Today. “And when we get older and less mobile, we can just sit back and enjoy the scenery,” said a retiree in his 60s.

“There is not much joy to be had from an en-bloc sale these days. After finding an alternative place to stay, there’s hardly any cash left over from the sale proceeds,” said a resident, who has vouched to stay put, in the face of the recent move by the pro-en-bloc group.

“Some people even find themselves short on cash when they finally settle down in another home, after paying renovation costs, which could amount to $100,000,” said Mrs Ye.

Some even wanted to get the sale of their former homes cancelled, after finding they were not able to get accommodation of the same standard as they had become accustomed to.

“Just imagine, we gave up our apartment in town because of an en-bloc sale and had to downsize with a new home in the ulus (away from the city),” said a couple who moved from upmarket district 9 to an outlying area in the north-east.

In practical terms, it could take a year to bring an en-bloc sale to fruition — from the time the residents agree to the move to the time a developer signs on the dotted line — and within that period, property prices would have risen, as is the trend these days. More often than not, the residents will have to downsize and stay in new homes without the ambience of their former homes.

Property experts expect that the value of Clementi Park might well rise when quiet and sleepy Sunset Way, a fringe road, is developed into the next food-and-beverage hot spot with new and swanky restaurants, pubs and cafes, as well as a better mix of shops.

A redeveloped Clementi Park could attract a younger mix of residents who would value the long-term potential of the estate when their children grow up and attend tertiary institutions, several of which are in the area.

But the future of the property market, despite the current resurgent mood, is still uncharted waters. It is dependent on, among other things, the influx of foreign talent and tourism growth.

“I would advise residents not to rush into any en-bloc sale,” said Mr Colin Tan of Chesterton International.

A low sale price is not the only reason why many older residents are against an en-bloc sale.

“I am fearful about having to move to a new area. I have grown to love my home. In Clementi Park, I have made so many friends over the last 20 years, and I will be lost if I had to move to the heartlands,” said a woman in her late 60s.

Would she ever sell if she got $2 million for her apartment, which is currently valued at $1.5 million?

“I might — the amount is attractive — but in the end, I doubt I will bite. I don’t have that many years left to live, and I might as well live the rest of my life in the comfort and serenity of my home in Clementi Park,” she said.

She may well get her wish. Right now, less than 20 per cent of the residents have joined the group urging an en- bloc sale.

Source : Weekend Today - 31 Mar 2007