Hougang Avenue 2 HUDC privatised, but en bloc sale unlikely

SINGAPORE — The Hougang Avenue 2 HUDC Estate has been privatised under the Land Titles (Strata) Act, paving the way for a collective sale of the 336 homes, although analysts said the chances of an en bloc deal would be slim in the near future.

The HUDC Estate, comprising Blocks 713 to 720 in Hougang Avenue 2,had obtained the required 75 per cent majority support for privatisation, said the Housing and Development Board (HDB) yesterday. Mr Nicholas Mak, Executive Director of Research and Consultancy at property firm SLP International, noted that, among the 18 HUDC estates, only five had successfully been sold collectively.

“Currently, the owners of the privatised HUDC estate Eunosville are trying to sell the property collectively, but there are no takers yet. One of the reasons is that some HUDC estates are too large for most developers to digest,” he said.

“The land area of the HUDC estate in Hougang Avenue 2 is about the same size as that of Eunosville. In the current property market, it will be challenging for the Hougang Avenue 2 HUDC estate to be sold collectively at a price that is high enough to satisfy all the owners.”

Mr Ku Swee Yong, Chief Executive of property agency Century 21,also warned that the size of the development might be a hindrance, saying that “today’s market is a bit more restricted to en bloc deals of around S$100 million because developers are more cautious about the outlook”.

The Hougang Avenue 2 HUDC Estate is the 15th of 18 HUDC estates to be privatised, said the HDB. Of the remaining three HUDC estates, Hougang Avenue 7 and Potong Pasir had obtained the mandate and are currently undergoing privatisation, while Braddell View is currently garnering support for privatisation, added the HDB.