The recent trend on private housing enbloc has stirred public’s interest for months since late 2017 due to a potential oversupply of housing units in the future.
One of the many Housing and Urban Development Company flats (HUDC) properties that was enbloc is the former Serangoon Ville. This collective purchase was carried out by Oxley Serangoon, a joint venture between Oxley Holdings, Lian Beng Group, Apricot Capital, entities of KSH Holdings and Heeton Holdings gave birth to the recent launch of Affinity at Serangoon.
Let’s explore the main changes from Serangoon Ville to Affinity At Serangoon to illustrate the transformation of an HUDC to a private condominium.
|Serangoon Ville||Affinity at Serangoon|
Publicly available information on the amenities of Serangoon Ville is limited, however, we have discovered some common amenities that HUDC have like the covered car parks and open landscaped parks.
In comparison, a modern full-fledged condominium like Affinity at Serangoon has more amenities options provided for the residents.
|Serangoon Ville||Affinity at Serangoon||
Affinity at Serangoon provides more options ranging from the 1-bedroom unit at 463 sqft to the 5-bedroom strata landed unit at 2347 sqft. While the former Serangoon Ville only offered a mix of 244 units of Maisonettes and Apartments.
Affinity at Serangoon offers more variety of units for home owners with varying needs. Regardless of the property use, a development that offers a wider variety of units tends to be able to perform better as it can cater to consumers with different demographics. To illustrate this, the preference of smaller size unit for the single or small family would be a classic example.
Prior to being enbloc in 2018, properties in Serangoon Ville were only transacted at an average price of $561.18 per square foot in 2016. While the recent launch of Affinity at Serangoon is at about $1,500 per square foot, a huge difference of almost $1000 per square foot.
New launch condos tend to have higher price appreciation due to factors such as the construction cost, renewal of the lease and development charge.
Despite having higher property prices, Affinity at Serangoon has more updated and modern facilities, and probably lower monthly servicing fees due to the higher number of units.
Some buyers may be penny wise and some may be willing to pay a premium for better facilities.
With this, I think HUDC enbloc has achieved its goal of rejuvenating older estates.
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References: The Straits Times, Mine.com
Contributor: Leow Wei Min