Showing posts with label History of Enblocs. Show all posts
Showing posts with label History of Enblocs. Show all posts

Sunday, 22 June 2008

Being a Responsible Home Owner

Yesterday's Straits Times (Saturday 21 June 2008) has a follow up to my previous blog post's ST article ("Landmarks at risk"). Written by the same reporter - Tan Hui Yee - the Saturday review gives a cogent argument about the differences between private and public ownership, and in particular the responsibilities that a private home owner should have, NOT ONLY to her private home, but to the common property as well.

Ms Tan Hui Yee asks an important question - at what point do we 'give up' on an old property and consign it to the demolition beasts? She points to an irate owner who told her that her condo (slated for conservation) does not deserve to be protected, as it was leaking and too old to be saved; better to enbloc it and reap the rewards. But the point of private ownership isn't just that you can do what you will to your own home, including selling it when you want, in whatever condition it is in. The point of private ownership is that you are responsible for your home and its surroundings. There's no fall back to some town council to help you out with major repairs. Instead, you and your neighbours are ultimately responsible to ensure your estate is in good, liveable condition.

And that, as Ms Tan Hui Yee points out, is something private condo owners have yet to learn to do.

Straits Times Saturday Review
Packing up your troubles is a mere cop-out
Tan Hui Yee
21 June 2008

A RECENT Saturday Special Report I wrote on Singapore landmarks drew an indignant call from a homeowner whose graceful 30-year-old development had been declared worthy of conservation.

She said there was no point in conserving the condominium because it was leaking. She and her neighbours hoped to sell the development in a collective sale, or more popularly known as an en bloc sale.

Did you try to fix the leaks, I asked.

Whatever for, she retorted. The estate was too old and the pipes were embedded in the floor.

Buildings are meant to outlast human beings - unless you live in disposable Singapore. Here, cars can be scrapped after five years and people suffer a pay-cut - while still doing the same job - after hitting 50. In all likelihood, there are many homeowners like Ms Too-Old-To-Be-Fixed out there.

Heritage lovers will have you believe that property owners gunning for en bloc sales are philistines all too willing to trade their spacious (but leaky) homes for gleaming new boxes in the sky.

These are the same people, they charge, who see no point in fixing leaks if they can still get good money for renting out their deteriorating properties.

These cardboard villains are products of a deeper problem. About 15 per cent of Singaporeans live in private homes today. Although that figure has been rising in recent years, it has not been matched by a growing awareness of how private estates should be run.

The colourful advertisements selling the pleasures of condominium living make it easy to forget the responsibility that comes with owning a private home.

The key difference between public and private housing lies in the parties which own and maintain common spaces. If a leak occurs in the common area of a public housing block, the town council fixes it. If that same leak occurs in a private estate, all its owners are responsible.

Laws governing strata-titled properties soften the weight of this responsibility by requiring owners to appoint a council among themselves, which then usually outsources the care of their estates to managing agents.

The resulting structure somewhat resembles that for public housing, except for the fact that the homeowners themselves hold the purse strings for expenditure on the estate.

Assuming that the estate's council works in the best interest of the estate, it still would have to contend with its ignorance of building maintenance. This is a specialised and grossly underrated field of practice, especially where residential buildings are concerned. It is a major component of study in the Project and Facilities Management degree programme offered by the National University of Singapore.

Estate management is a thankless job, made worse by the tendency of homeowners to stint on maintenance fees because they have splurged on their homes. Homeowners who suggest raising maintenance fees are quickly shot down by sceptical neighbours. Too many people, it seems, think they know what it takes to maintain a building and not enough are willing to spend money on the professionals.

The result is a race to the bottom: homeowners pick the cheapest managing agent, who picks the cheapest contractors, who hire the cheapest staff.

Adding to this recipe for neglect is the unregulated nature of the facilities management industry. There are currently about 30 managing agents accredited either by the Association of Property and Facility Managers or the Association of Management Corporations in Singapore.

Anyone, regardless of credentials, can set up a company to 'manage' properties. If his rates are low enough, he will have no shortage of business. From then on, it is simply a matter of keeping up appearances.

As long as the appointed contractors keep the lobbies spanking clean and security guards patrol the boundaries zealously, cracks and leaks in hidden areas go unchecked. In the long run, it is the cracks and leaks that will prove to be expensive - and perhaps even dangerous.

Barring cases of truly shoddy construction, the truth is that leaky pipes embedded in floors can be fixed. All it needs is an owner to raise the red flag and a managing agent to investigate and rectify the problem.

But it is so much easier for a lone homeowner to shrug off the problems and proclaim one's property 'too old'. Doing otherwise might be to set oneself up for a huge expense, a whole lot of heartache and nasty comments from penny-pinching neighbours.

For a nation obsessed with property, we haven't quite got the hang of caring for it so as to make it last. Such wasteful behaviour does not make good sense at a time when climate change and unchecked development are driving up construction costs worldwide.

The buck needs to stop somewhere, before our residential districts become a perpetual construction site as homeowners pack up and go at the first sign of physical deterioration.

It is time we learnt that stumping up the cash for a condo is not the end of private homeownership. It merely marks the beginning of a long journey.

Saturday, 7 June 2008

Every Building Tells a (Hi)story

As battle lines continue to be drawn in estates that are undergoing the enbloc sale, owners pitch against owners to protect their homes. What it all boils down to, this notion of the enbloc sale, is this:

The value of space.

That space is valuable need not be repeated because it’s so obvious in Singapore’s context, and it has been drummed into our consciousness by years of national education. 'Valuable space' is the primary drive behind the government’s policy that gave birth to the enbloc sale. Urban renewal is another way of saying that space is a premium.

But here’s where policy meets reality, when things start to become problematic: What do we mean by “valuable”?

To policy makers, the value of space is the maximum living and/or commercial potential an area can provide. Profits and revenue (they’d argue) are secondary. ‘Sentimental attachment’ isn’t even in the consideration.

To the construction industry, the value of space is their bread and butter. Profits can only be achieved if they have something to build, and sell. Space potential depends purely on whether profits can be achieved or not, and how much. ‘Sentimental attachment’ is realised in aesthetic terms – whether a building is pleasing to the eye, or purely functional.

To the ‘specuvestor’ (to use Jessica Cheam’s term), those investor-speculators that buy units in private estates purely to sell at a profit, the value of space is their luxury. After all, in all likelihood they have their own homes (typically untouched by such enbloc sales), and investing in additional homes is a lucrative way of improving their bank accounts and lifestyles. Space potential is a investment risk assessment – no increase in plot ratio means an estate is less likely to go enbloc. ‘Sentimental attachment’ is non-existent.

To the resident home owner, the value of space is their histories and memories. It is unquantifiable, it cannot have a value placed on it in any simple manner. It is one’s identity and being in the world, one’s relation to the world. Today’s Saturday Special (“Landmarks at Risk”) brings home this point.

Each space has a story, and a history.

Whether it’s a home or a shop space or a building, that space is empty until someone associates it with memories. Without these memories or histories, these spaces do not provide any form of ‘anchor’ to any person. A young child going to the Civilian War Memorial in town will not understand or appreciate its significance unless it is explained to her in a history lesson. But an old man who went through the Japanese Occupation will see the memorial space as far more significant than a lesson in national education – it triggers memories of a dark time in Singapore.

The value of space is where battle lines are drawn, but it is the fact that the value of space is a (hi)story, which cannot be quantified, that will cause many who read the Saturday Special article with fond memories of those buildings mentioned.

It is the value of space as (hi)story that is making resident owners fight so desperately to keep their homes.

When will policy makers ever realise this value of space?

You can read the Saturday Special piece here, here, here and here (in 4 parts).


Friday, 4 April 2008

1996AD (Not exactly 10,000BC) - Origins of Enbloc Nightmare?

I've just had an interesting discussion about the recent Channel 5 TV series called "En-bloc". Putting aside the sensationalism of what is really a traumatic experience for many people, and the rather stereotyped portrayals of 'anti-enbloccers' in negative ways, it made me wonder how did our existing enbloc laws (allowing for majority consent) really start.

I dug around the ST archive as far back as I could.. Pre 1997 Amendments that changed the enbloc law to allow for an 80%/90% majority consent. Back then, property consultants involved in enbloc sales pointed out that the larger the estate, the lower the chance of a successful enbloc simply because it's plain harder to get that unanimous 100% consent.

I found, in May 1996, several ST Forum letters including a 1000+ worded letter (1000 words!) that sounded about the right time to get the government to rethink enbloc policy (about a year to the 1997 Parliamentary debate). The 1995-1996 period was also the time when SERS or Selective En Bloc Redevelopment Scheme was implemented, which saw HDB flat prices escalate phenomenally. I'd argue that the SERS got the public consciousness to link enbloc = profits.

But why limit the windfall only to HDB SERS? Why not private condos? It's true that at that time, enblocs are possible, just incredibly difficult due to the 100% consent.

So back in May 1996, Mr John Christopher de Souza and Mr Ronny Sim suggested in their ST Forum letters a revision of the enbloc law of 100% consent. Mr Sim, for example, calls it an 'exit strategy' for condo owners - a revision of consent to 75%. These were followed by an ST commentary by Tan Sai Siong, putting into public discourse the term "the tyranny of the minority". Arguing that buildings that are over 30 years old will fall apart because it's the end of their life cycle, Ms Tan again brought up the profitability of SERS for HDB estates, and suggested 75% or 90% as suitable thresholds.

You can read the full texts (which I won't reproduce due to length) here on scribd.

These were followed by 2 letters by Martin Goh and Laena Tambyah, very prescient of all the troubles we face now regarding enbloc sales. I'll reproduce them since they're short :) (You can read them in the scribd link as well.) I wonder if we ever meet the writers of these letters now, almost 12 years later, what would they say?

(As a note - 1996 was about the time when the government imposed a major curb on property speculation, especially for enbloc sales - the taxes on capital gains. Reports suggested that the taxes did not deter people from investing in enbloc potential estates, with a record number of enbloc sales in 1996 - despite unanimous consent required.)


The Straits Times (Singapore)
May 13, 1996
Forum; Pg. 28
En-bloc sales: Owners should not be forced to sell property

I REFER to Mr Ronny Sim's letter "En-bloc sales: Exit strategy needed" (ST, May 7). While I agree with him that there is a need for old estates to be upgraded via redevelopment, I find the idea of a Bill to deny the minority their right to object to a redevelopment proposal absurd.

Most en-bloc sales promise incredible profits. Under normal circumstances, any person would be enticed to offer his property for a collective sale. But there are some who may have reasons to object to such a sale. One example could be that of a property inherited from a loved one. It may have great sentimental value for which no amount of money can compensate. Imposing a "majority wins" rule defies all fundamental rights in property ownership. It may also give rise to abuse by unscrupulous individuals or groups for selfish gains.

I sympathise with Mr Sim's frustrations, but I cannot agree with his suggestion for legislation. I find it fascinating that a Member of Parliament supported his suggestion to force an individual to sell his property against his will, just because the majority thinks it is a better option.

MARTIN GOH

The Straits Times (Singapore)
June 8, 1996
Forum; Pg. 36
Spare a thought for the elderly who may not need fancy condos
THE COST OF THE SINGAPORE DREAM

THE letter "Don't pursue dreams at the expense of others" (ST June 3) is timely.

One aspect of materialism at the expense of others that is not mentioned is the singlemindedness with which some Singaporeans are pursuing the possibility of making a killing through en bloc sales of condominiums.

I have heard, on more than one occasion, comments such as "There's one old woman holding out" and "If only that old couple would be more reasonable".

The elderly folk who are holding out and appear to be unreasonable have probably spent all their CPF and other savings on purchasing these particular apartments.

In all likelihood, valuing their independence, they bought their homes for proximity to family and accessibility to shopping and transport. In their twilight years, they are expected to uproot themselves and move to unfamiliar surroundings.

There are no retirement villages or similar facilities in Singapore where the independent elderly can retire in comfort and dignity.

Where are they going to move to? Will banks consider them credible clients for loans to purchase new property?

The elderly may not want or need the new fancy condos. If the younger folk yearn for luxury amenities, perhaps they should take a lesson in thrift and patience from their elders, and in due course they will be able to afford (with a clear conscience) those tempting dream condos instead of hoping to make a fast buck at the expense and inconvenience of our senior citizens.

LEAENA TAMBYAH