Latest update
• Teresa Ville Protem Sales Committee (TVPSC) met on August 25, 2007.
• In responses to invitations to 5 Property Agents and 5 Legal Consultants, there was positive response only from following property Agents
o Jones Lang LaSalle (JLL)
o Huttons
• None of the invited Law firms accepted their invitation.
• In last week of August 2007, a number of amendments in the Law governing process of Collective Sales were proposed. These proposed changes also include process of selection of Property Agents and Law firms.
• On recommendation from one of the subsidiary proprietors, an invitation was sent to a Law firm named De’souza Tay & Goh, who agreed to meet.
• On September 1, 2007, all 3 above mentioned firms met TVPSC members.
o De’souza Tay & Goh law firm presented their credentials and briefly explained salient points of proposed changes in Law. As per their view, Teresa Ville Protem sales committee shall be deemed as lawful, as it was formed in a duly convened EOGM.
(This is one of the requirements in proposed changes in Law. )
o JLL had a discussion with TVPSC members, who suggested that they should wait till new Law comes in force, before proceeding further.
o Huttons, gave a formal presentation on their experience and proposal to act as the Marketing Agent..
• Following TVPCS members submitted their resignation as committee members, due to work commitments –
1) William Phua (August 20)
2) Jacqueline Boudeville (August 24)
3) Philip Ang (September 9)
4) Kum Kong Chan (September 13)
In meeting of August 25, members unanimously agreed that since there were sufficient number of committee members, instead of looking for replacement, committee would continue to function with remaining members.
• Despite proactive efforts to invite more Property and Legal firms, there was not much success in getting positive response. It is a general presumption that most of Property Agents and LawFirms are waiting for the new Law to come in force (expected in October 2007). They might like to study impact of new law on scope of their role, responsibilities and costs before giving a serious proposal.
It is therefore decided that instead of evaluating only limited number of candidates and proceeding further, they should wait till the new Law is in place.
TVPSC shall now meet, only after the New Law is in force and shall proceed as per the provisions of new law.
Thank You..
Update...
A quick update
EOGM was convened on 28 July Saturday at 3:00 pm at Function Room 2&3 in TeresaVille, & following :
(1) 59% quorum was achieved
(2) 76% of the quorum voted "FOR" collective sales.
(3) A Reserve price of 850+ million for the entire estate was fixed by majority vote. (proposed 800+, 850+, 900+)
(4) A sales Committe of 15 members was selected & endorsed.
Any comments/views, please share in the post below. Cheers !
EOGM was convened on 28 July Saturday at 3:00 pm at Function Room 2&3 in TeresaVille, & following :
(1) 59% quorum was achieved
(2) 76% of the quorum voted "FOR" collective sales.
(3) A Reserve price of 850+ million for the entire estate was fixed by majority vote. (proposed 800+, 850+, 900+)
(4) A sales Committe of 15 members was selected & endorsed.
Any comments/views, please share in the post below. Cheers !
4 comments:
We moved here because our previous place was en-bloced (no we are not en-bloc vulture investors ha ha ha... we lived at our previous place since the 1980s at Jervois Court)..... I still remember that time, it was extremely unpleasant..... everyone was emotional and we came up with a Reserve Price that was equally UNEDUCATED and UNRESEARCHED (literally plucked it out of the air) that was thrown out by the developer who had a TON of SEEMINGLY LOGICAL rebuttals to make us feel VERY STUPID.....yes THEY made many of us actually feel as if WE were the Most Greedy and Ungrateful people on Earth ....... and they did this in the most Smiling, Polite and Friendly manner. We sold for about $600 psf..... YES THATS right 600 psf..... residents even THANKED them for it and for educating us..... take a look at Jervois ONE today..... When the agent comes to your home to talk about the Collective Sales Agreement..... DO NOT expect someone slick/cool/sweet/conjob type of agent......... you'll get most likely a humble/sincere-sounding/concerned/I'm-on-YOUR-SIDE demure soft-spoken innocent-looking who will protray him/herself as someone whose VERY WORRIED about your family's welfare. Some will even tout Tampinese, Pasir Ris as great relaxing sea-side locations. BE ON YOUR GUARD...... their ONE and ONLY goal is go get you to sign and agree to the Collective Sales Agreement. One popular argument is......"If we dont sign then how to negotiate with developer?" we found out later, it is perfectly possible for negotiations to proceed BEFORE the CSA is executed. Then sign a Non-Disclosure Confidentiality Agreement where both parties can negotiate and if it fails, both parties are obliged to keep details of the negotiations confidential for a period of time. IF you're going to sign the CSA, PLEASE make sure a Reserve Price is included inside........ no reserve price inside the CSA....... then DO NOT Sign it.......and READ the fine print of the CSA carefully BEFORE You sign...... there are clauses in there that gives the Committee powers that can be abused.... Expecting the worst...... my wife and myself have begun taking precautions and already looking for a replacement unit around the area......... the only suitable one seems to be The Lodge at Mt Faber and then The Carribbean and one condo across the road from Vivo City. We were looking at Trilium, Park Valley and Melrose Place but the prices are ridiculously expensive ...... We've done our maths and replacement cost is actually in region of about $1600 per sq feet (property cost with legal fees/stamp duties/and a tight $50,000 budget for renovations) with no extra profits at all for our troubles. What numbers for replacement units have you come up with? We'll be keen to know other research done. Anyway, how do we know what a fair price for Teresaville is? I'm sure the agents and developers have an idea. We should do our homework too..... 1. find out the exact land size of our plot2. the existing plot ratio and future expected plot ratio3. HOW MUCH of the plot ratio has already been used4. An estimate of the development charges5. An estimate of the cost of the development6. An estimate of how much maximum live-in residential area the developers can build on current and future plot ratios7. An estimate of revenues of developers at different $s psf levels When negotiating, its prudent to negotiate with facts on our hands. This information is quite available from URA for a small fee...... I think if everyone can come up with a hundred bucks or so, or we can draw same $ from the existing sinking funds, we could engage a property lawyer or company to put up an un-biased study for us.... we need to at least have an estimate of the limits beyond which developers will not go beyond..... THEN you can come up with a REALISTIC, EDUCATED and RESEARCHED Reserve Price The agents and developer will not tell you their numbers.....to them, they have their numbers already calculated and will start low with a known tolerance price level beyond which they will not go .... its up to us to come up with a reasonable estimate of OUR own numbers They have the facts...... we dont (not yet)..... who do you think is in a better position to negotiate?
I am undergoing an en-bloc process with my other property in Singapore. It commenced in November 2006, and is currently undergoing the 80% vote collection stage.
The en-bloc manager estimates completion by mid-2009. The process will take at least 2 to 2.5 years.
Since November 2006, the en-bloc manager has already increased the sale price by 20%, and is estimating further increases by the time the deal proceeds.
They are finding it very difficult to finalise a price, given the volatile property market the moment.
My recommendation, based on my current en-block experience, is to HOLD OFF THE TERESA VILLE EN-BLOC. There is massive potential in Teresa Ville, and we should not be thinking of selling an appreciating asset at this early stage of market growth.
Kapoor Block 1003, #18-04
I have been involved in an en-bloc before and let me warn all that it is without a doubt the least transparent and most one sided process I have seen.
The people that we pay the fees to dont get paid unless we sell. We are paying them to work for the buyer. I am unaware of any other country where this happens. It is not in their interests to push for a high price or tell anything other than half truths.
The process will start with the agents presenting a number of options for if we are moved within a 3km radius of TV. I found with my en bloc what they were showing to be well behind the market and even challenged that if they could sell to me at teh prices they showed I would buy every property they had! Obviously they didnt exist!
Every argument that they give for selling will be the opposite of what they will tell you if you were to go out with a buying agent on the weekend but the biggest that they will give is dont miss this boom! I would like to ask what we are missing in a country with such big plans for the future in one of only two freehold properties in district four? We only have upside in the value of our property.
My last thought is the settlement timeline. They will say 9 months, it will more than likely be 18. In 18 months you will receive your cash and should be able to afford an equivalent unit in Changi by then. I would just like to urge caution rather than thinking about the pot of money which will more than likely not replace your current home! You will make a paper profit and an Asset loss! Think of replacement cost for the area and double it. Then, you may just come out in front! but more than likely not!
Justin Knight 23-03
I sold off another property in an en bloc in early 2007, and within half-a-year, our neighbouring condo development was sold en bloc for more than double the price psf ppr.
I missed out on $1.7 m of profits.
Do you think you will be able to eat and sleep well if the same happens to Teresa Ville?
Don't anyhow sell off properties, especially freehold properties which have infinite holding power.
Horizon Towers people are lucky. Not everyone can get their properties back once they are sold cheaply to developers.
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