Lift upgrade could bring windfall

By Jamie Ee Wen Wei

Opposition ward residents just got a lift, in more ways than one.

Property prices are expected to rise for flats in several blocks in Hougang and Potong Pasir. These blocks have now joined the popular Lift Upgrading Programme (LUP).

Under the programme, lift landings will be installed on every floor, which is a boon especially to senior citizens.

While the LUP will make only a small difference to the official valuation of flats in the chosen blocks, property players say their cash-over-valuation – the premium that sellers demand over the official valuation – will rise by $5,000 to $10,000.

PropNex chief executive Mohamed Ismail said: ‘The Lift Upgrading Programme definitely adds greater value.

‘This is especially so when Singapore faces a greying population. A lift landing on every floor becomes a plus point.’

The experiences of PAP wards which have gone through the LUP bear out this effect on flat values, property experts noted.

Mr Chris Koh, director of Dennis Wee Group, added that Hougang and Potong Pasir units are already popular with resale flat buyers because of their location and accessibility.

For instance, the Housing Board’s website showed that the median price for a three-room flat in Hougang is $233,000. This is higher than those in popular towns like Serangoon and Yishun.

With the LUP coming to the opposition wards for the first time, Mr Mohamed believes this may help reinforce the idea that residents living there are not disadvantaged.

‘You may not be the first in line but you don’t lose out either,’ he said.

It is all good news for taxi driver Ang Hoo Choi, 63, who lives in Block 352, Hougang Avenue 7. His block is among those picked for the upgrading programme.

His family is moving to Punggol next year and he expects to be able to sell his four-room unit for a higher price then.

‘We were hoping to sell it at about $300,000 but now we may be able to get $320,000 for it,’ he said.

Residents with no plans to sell their flats liked the convenience the LUP brings but were understandably not excited about any property price windfall.

Bill collector Ong Cheng Lam, 69, has been living in a three-room flat in Potong Pasir Avenue 1 for more than 20 years.

He said: ‘Property prices are so high now. Even if I sell my flat, I will still have to pay a high price for a new one.’

He added: ‘But I’ll support the programme because it will be more convenient for residents here.’

The Sunday Times understands that circulars have been distributed to residents in the selected blocks.

In Hougang, the first six blocks picked are Blocks 351, 352, and 354 to 357 in Avenue 7. In Potong Pasir, they are Blocks 101 to 109 in Avenue 1.

A poll will be held soon among residents of each block, and the LUP will proceed if 75 per cent of them vote in favour of it.

The Government pays between 75 per cent and 90 per cent of the upgrading bill, depending on the flat type.

The remaining 10 per cent to 25 per cent is shared between the town council and the resident, depending on the flat type.

This article was first published in The Straits Times.

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