It's all about HUDC in the latest issue of "The Real Deals" by Maybank-Kim Eng Research.
The report also highlighted Lakeview Estate, which should be a good candidate for redevelopment... technically that is.
It may surprise many that Lakeview is currently transacting at a discount of only 9.4% compared to the other private estates around the area. This is especially when Lakeview has no facilities other than a small playground. However, the estate is located near to (but far enough away from all the traffic noise) the main Upper Thomson Road and within walking distance to Marymount MRT station. There is also unconfirmed report that an access to the new Thomson Line will be built relatively close to the estate. But what is most appealing about Lakeview (at least in our opinion) is its proximity to FOOD - there are options aplenty that are almost at your doorsteps so you will never ever go hungry. Families with school kids will also appreciate the various enrichment schools that are located along Upper Thomson Road. And for those who loves greenery and nature, Lakeview is situated right next to the Macritchie Reservoir and its forest trails. Matter of fact, one can access these directly from within the estate!
Given the supposed excellent location, why did the wife and I say that the en bloc potential of Lakeview is only "technically" good? We understand from very reliable sources that the bulk of the residents within the estate are elderly folks who have lived in Lakeview for tens of years. Many are even first owners! As such, it will be extremely challeneging to entice these group of people to vacate the estate. And one cannot underestimate the power of sentimental values especially with the older generation.
However, we feel that it may not be all bad if Lakeview does not go en bloc within this boom cycle (or whatever's left of this boom cycle, that is). There are no that many plots of vacant land left around the area that the Government can put out for sale. One such is a plot directly in front of Lakeview, which should be considered prime land (given its location). And if this plot is sold and a new condo project is built at this site, it should benefit residents of Lakeview as the values of their apartments will most definitely appreciate (remember Sky Habitat?). And once the supposed "nearby access" to the Thomson Line is confirmed, the site that Lakeview currently sits on will definitely be worth more than what it can fetch currently (think Thomson View Condo).
So we reckon Lakeview will probably be better off waiting a couple more years before they decide to do a collective sale... in our humble opinion, of course.
Click on below to read the Maybank-Kim Eng report:
http://www.scribd.com/doc/111187346/The-Real-Deals-25-10-2012#fullscreen
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3 comments:
I can't see how they will build an exit near to Lakeview. According to the TSL map, the nearest possible access to Lakeview from the Upper Thomson Station is at Lorong Mega. This makes TSL about as far as Marymount Station.
So do you think property prices will go down in the next 2-3 years? Im actually contempleting to buy now btw laguna park or lakeview estates.
Seek your advice. Thanks!
Hi Ping92,
Our crystal ball has been rather murkier these days, but it does suggest that private home prices are likely to soften in the next 2 - 3 years. But by how much is the million dollar question - even the market experts fail to agree on this so the wife and I wouldn't need to work as hard in our day jobs if we have the exact answer! :)
For Laguna Park or Lakeview Estate in particular, one important question is how bright the "en-bloc flame" will burn at these developments in the next 2 - 3 years. Assuming everything stays constant, prices for these will probably come down abit given their age and competition from newer condos when the market softens.
Hope that helps and good luck with your decision!
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