REFURBISHMENT OF RENT-CONTROLLED PROPERTY - SOPHIA FLATS

Abstract

Real property has always been a lucrative form of investment. With the constant building of ultra-modern serviced buildings in Singapore, a segment of the real estate market has been left virtually untapped. The latter has always been referred to as rent-controlled properties. Investment in rent-controlled property has always been approached with fear and doubts. The factors that have caused much obfuscation to the investors are often the legal investment environment pertaining to rent-controlled property as well as the lengthy and often costly process of regaining possession. With the concerted move to de-control pre-war properties in recent years, this study aims to scrutinise the legal investment environment that an investor has to tussle with when investing in rent-controlled property It will look into the common approaches used in the market to regain possession with reference to a case study —Sophia Flats. The case study has shown that the mere stroke of the pen can have tremendous implication for an investor. Properties which have been marked out as a "designated area" are able to invoke the provisions under the Controlled Premises (Special Provisions) Act --- which reduces greatly the time and effort exerted in regaining possession. Though legislation is there to help an investor, the latter is often unable to fully benefit from the situation for they are always bogged down with technicality. Negotiation has been found to be useful if the investor is able to carry out some ground works on his own. Comprehensive ground works can help "turn the table around". Lastly, the author hopes that this study will highlight the latent investment opportunities in this virgin segment of the real estate investment market.