Friday, April 07, 2006
Flats in Bukit Panjang area are sold below valuation due to transport woes
WHEN 49-year-old factory worker Loke Seow Wah bought an executive flat nearly five years ago at Segar Road's Block 468 with her sister, she hoped it would bring the family closer together.
Another sister, Madam Loke Jie Hui, also relocated two years ago to a five-room flat in Block 474 with her 44-year old husband Henry Chong Wan Hon, an SIA storekeeper, and their two sons.
The extended family chose the area because SMRT bus Service 920 would take them to the string of facilities at Fajar LRT station. The amenities include 30 shops, one supermarket as well as two food courts.
Besides, their elderly parents enjoyed living near the nature reserve.
Instead, the bus service was stopped soon after the LRT began operations because the cluster of blocks from 465 to 472 and 473 to 484 are within the requisite 400m from Segar and Fajar stations.
"We depended on that bus service because with elderly parents or health problems, even a 15-minute walk is difficult. Most taxis don't come into this area because it's too isolated, which means more money to call a cab," said Mdm Loke Jie Hui.
And factors like that are playing into the valuation of property in the area, according to analysts. "The Bukit Panjang area in general has a greater proportion of sellers than buyers. Even if people buy in that area, they don't stay there, so it looks unoccupied and empty," said Mr James Lee, of James Lee Realty.
Mr Lee, who just sold a flat valued at $280,000 for $265,000, said that executive flats valued at about $350,000 would incur a loss of about $20,000.
"It's supposed to be subsidised housing but people are losing money instead."
According to Mr Eric Cheng, director, senior division of Propnex, 60 per cent of the five-room flats in the Bukit Panjang area are selling below valuation price, compared to the national average of 40 per cent below valuation.
"Buyers compete for units in really matured estates such as Tampines or Clementi and you can sell a five-room flat in Tampines at $300,000 in under three months.
"But a buyer's rate in areas like Senja, Bangkit or Segar is really low. So a home owner may end up waiting as long as five months before selling below valuation," he said.
Meanwhile, developments are on the way in the newly carved out Bukit Panjang Single Member Constituency (SMC), which has a population of 30,400 voters under incumbent MP Dr Teo Ho Pin.
They include a primary school that will be built at Bukit Panjang Ring Road opposite Block 449A by the end of next year and an 800m covered walkway from Segar Road to Fajar station.
Singapore Democratic Party chairman Ling How Doong is likely to contest in the SMC in the upcoming General Election.
But what about the desire for bus services by the residents of Segar, which used to be under the Holland-Bukit Panjang GRC before the electoral boundaries were redrawn this year?
"Although the Segar area doesn't fall within the new SMC, we are working very hard to see if a feeder bus can service that area. But we also have to make sure that the 40,000 commuters who use the LRT are not short-changed if a feeder starts up.
"We cannot let the LRT become a white elephant. So it is a complex issue," said Dr Teo.
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Another sister, Madam Loke Jie Hui, also relocated two years ago to a five-room flat in Block 474 with her 44-year old husband Henry Chong Wan Hon, an SIA storekeeper, and their two sons.
The extended family chose the area because SMRT bus Service 920 would take them to the string of facilities at Fajar LRT station. The amenities include 30 shops, one supermarket as well as two food courts.
Besides, their elderly parents enjoyed living near the nature reserve.
Instead, the bus service was stopped soon after the LRT began operations because the cluster of blocks from 465 to 472 and 473 to 484 are within the requisite 400m from Segar and Fajar stations.
"We depended on that bus service because with elderly parents or health problems, even a 15-minute walk is difficult. Most taxis don't come into this area because it's too isolated, which means more money to call a cab," said Mdm Loke Jie Hui.
And factors like that are playing into the valuation of property in the area, according to analysts. "The Bukit Panjang area in general has a greater proportion of sellers than buyers. Even if people buy in that area, they don't stay there, so it looks unoccupied and empty," said Mr James Lee, of James Lee Realty.
Mr Lee, who just sold a flat valued at $280,000 for $265,000, said that executive flats valued at about $350,000 would incur a loss of about $20,000.
"It's supposed to be subsidised housing but people are losing money instead."
According to Mr Eric Cheng, director, senior division of Propnex, 60 per cent of the five-room flats in the Bukit Panjang area are selling below valuation price, compared to the national average of 40 per cent below valuation.
"Buyers compete for units in really matured estates such as Tampines or Clementi and you can sell a five-room flat in Tampines at $300,000 in under three months.
"But a buyer's rate in areas like Senja, Bangkit or Segar is really low. So a home owner may end up waiting as long as five months before selling below valuation," he said.
Meanwhile, developments are on the way in the newly carved out Bukit Panjang Single Member Constituency (SMC), which has a population of 30,400 voters under incumbent MP Dr Teo Ho Pin.
They include a primary school that will be built at Bukit Panjang Ring Road opposite Block 449A by the end of next year and an 800m covered walkway from Segar Road to Fajar station.
Singapore Democratic Party chairman Ling How Doong is likely to contest in the SMC in the upcoming General Election.
But what about the desire for bus services by the residents of Segar, which used to be under the Holland-Bukit Panjang GRC before the electoral boundaries were redrawn this year?
"Although the Segar area doesn't fall within the new SMC, we are working very hard to see if a feeder bus can service that area. But we also have to make sure that the 40,000 commuters who use the LRT are not short-changed if a feeder starts up.
"We cannot let the LRT become a white elephant. So it is a complex issue," said Dr Teo.
New Yahoo! Messenger with Voice. Call regular phones from your PC and save big.
// posted by Shajahan @ 12:48 PM 