If you’re investing in real estate, chances are you’re in it for the long haul.
That way, when you finally sell your unit, you can make a decent profit and retire. Sounds good, right?
But what happens if you suddenly find out midway that your unit is going to be pulverised to pieces?
Well, that’s exactly what happened to two home owners in Thomson Road.
Everything About the Impending Demolishment of a Building in Thomson Road
Earlier this year, the owners and tenants living in the building at 68 to 74 Thomson Road had to vacate their flat temporarily in order for nearby excavation works to be carried out safely.
The building’s foundation needed to be strengthened to withstand the impact from the construction of the upcoming North-South Corridor’s underground tunnel.
Both the owners and tenants who had engaged with the authorities believed that they simply had to move out for two years, after which they could return to their flats and lease them out again.
As a result, all of them had moved out by February this year.
But then, on Friday (16 Apr), the authorities stunned them by announcing that the building and its 776 sq m site were being acquired for demolition.
Owners Shocked by Demolition Announcement
One of the owners who spoke to The Straits Times said he purchased a unit in the building around 10 years ago for around $1.5 million including renovation.
He has been leasing the unit to expats and collects $9,000 in rent every month.
He said he’s in shock, as he didn’t intend to sell his unit this early.
“Taking the building away is like taking away my retirement fund,” he said.
Another owner bought his unit for more than $1 million around six years ago as an investment.
Like other owners in the building, he hoped to sell his unit in a collective sale with other owners.
Each owner expected to get around $3 million for their flats, but if the government acquires their property, the owner fears he won’t break even.
Is the Demolition Necessary?
Yes, according to one expert.
Speaking to ST, David Ng, a council member at the Institution of Engineers Singapore, explained that the demolition makes sense because the excavation work could cause part of the building’s foundation to move downward and damage the building.
Strengthening the building’s foundation involves installing additional piles beneath it, but this process would be unsafe for workers as the installation could lead to excessive distortion of the building’s structure, and possibly even a building collapse.
This is why demolishing the building is necessary before adding the piles.
One of the owners who happens to be a semi-retired architect, however, believes otherwise.
“I have asked LTA to give me an opportunity to look at their engineers’ report because I have been in this line for more than 30 years. I understand structural engineering issues fairly well,” he said.
Even if the demolition is necessary, he doesn’t understand why the government has to acquire the land as well.
“The concern is the safety of the building. The land is not in the equation here,” he said.
The unit owners said they will be meeting to discuss their options.
Featured Image: Google Maps
