You have a point, Wong: How can a footpath that we have been using since the 1960s be considered Shunfu Ville property. My guess is that somewhere along the way, someone must have blundered. So now, many years down the line, matters have come to a head, and the leaders don't know what to do. At the last Dialogue, I heard this refrain: What can I do? If our leaders are powerless at their level, maybe a higher office eg: PMO can lend support.
We need to know first and foremost the purpose of the government's agenda to privatise HUDC estates and look at it from their perspective.
ReplyDeleteThe redevelopment plot ratio of HUDC estates is quite high (2.8 at Shunfu). This means that the existing strata space can be multiplied by 2.8. In other words, where there are now only about 350 units of around 1700sf each, a developer can build about 1000 units between 950-1000 sf and another 3-500 units of about 1400-1600sf. The government certainly wants HUDC land redeveloped. There is no other logical explanation. The HUDC estates in Hougang, Serangoon and Potong Pasir were told in 2010 they have no other option but to privatise as they're ineligible for upgrading and will not be candidates for HDB enblocs. They were also told to get the 75% mandate to privatise before 2013 with a fee cap of $30K or pay the actual value of the land. The cost of maintaining HUDC's is higher than that of HDBs and the MND together with HDB want freedom from this responsibility. Through privatisation they can effectively wash their hands from structural problems with the buildings or estates.
At the time HUDC estates were built, it was a well-known fact the Minister of National Development was Tay Chiang Wan. After taking 2 bribes of $500k each from a corrupt contractor responsible for building the HUDC flats in Shunfu, Hougang etc for civil servants, he committed suicide in 1986. We could therefore ask ourselves if the bribes were to cover up shoddy workmanship. Remember that HUDCs at this time were unpopular and considered overpriced, unsubsidised public housing.
In an en-bloc sale, the developer would typically pay the government a Development Charge of around $50-100 million and even more to top up the lease. By selling the land the walkway is on to the HUDC residents, the government is enhancing the estate's appeal for redevelopment. As the estate now owns the land, the only solution could be that of buying over the land the walkway is on (as leasehold with only about 70 odd years left)from the privatised HUDC estate. But this will be very expensive and impractical - surveyor fees, legal fees, subdividing the land, issuance of a new title - will take at least 2.5 years to complete. Shunfu would only sell the land to TGN owners at a very high price.