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.
I lived in 7xx for 20 over years but not in the weirdly named Florence agency. Your parents hit jackpot while mine didn’t
Well, that area has a mix of HDB and HUDC estates. My parents got lucky picking the HUDC estate but I wouldn’t call it hitting the jackpot now that it has been sold enbloc. Haha, it would have been nice for them to continue staying there if they could.
Hey big congrats!! Especially for your parents! 🙂 🙂
Must have been real nail-biting for them waiting for the results of backend negotiations!
Anyway now it’s more of happy problems heheh…
Resale HDB 5-rm in that area about $480K.
4-rm are around $380K … big diff.
Basic & functional reno including new appliances / furniture should not cost more than $30K.
Should still have net nest egg of at least $1.3M if going for 4-rm around same area.
Yup, it was an uncertain time then but I’m glad there’s a conclusion. Thanks!
It depends on whether my siblings will continue staying with my parents. That should determine whether they go for a resale 5-room or 4-room HDB flat.
That would be a good net nest egg to have but I reckon it is more likely to be less than that.
congratulations to your family. they will need your help to deploy a windfall cash of 1.4 mil.
Thanks! Haha, I spoke to my family and they are now thinking of purchasing a private condo since they cannot qualify for HDB flats due to overseas property ownership. Looks like there might be no windfall gain to worry about!
May I ask if you attended the meeting yesterday? And if you recalled what were the conditions from initial bidders? Too bad my dad couldn’t remember them except for the bid prices.
Nope, I did not attend the meeting on Sat 28 Oct 2017. Maybe you can refer to any letter that was sent in relation to the collective sale outcome? I’m only monitoring this at a high level as I no longer live with my family. They would be more aware of the detail in relation to the collective sale.