I honestly didn’t think Florence Regency was going to be sold enbloc after the public tender for the collective sale had closed and the 3 bidders refused to raise their bid prices to match the valuation. To think that a deal could be closed under private treaty with another developer within 10 weeks of the close of the public tender is a good achievement by the marketing agent JLL.
There is still some ways to go for the legal completion of the sale but things are about to get interesting for my family. With approximate gross sales proceeds for my family’s unit at S$1.85 million, this will probably be my family’s biggest windfall gain so far if the sale can be legally completed. It also creates a problem for them. They now have to start looking for another place to live in.
To retain as much of the windfall gain as possible, they will have to avoid upgrading to a private condominium. It would seem like a 5-room or smaller HDB resale flat would make the most sense. They seem to prefer living in the same area but I wonder whether they are open to moving to another area. You also have to factor in the moving and setup costs.
I wouldn’t be surprised if the net proceeds, if the sale can be legally completed and after taking into account all the various relocation costs, is less than S$1 million. Nevertheless, it would still be a significant sum of money to manage if it happens. This would be another problem to deal with as they are going to have to learn how to build a sizeable asset portfolio with cash savings and investments to meet their financial needs. I hope they take the time to learn as much as they can about everything to prepare for this eventuality.