It’s coming to the end of 2017 and for the past few months, we have been reading about one residential property after another being sold en bloc, with many more being put on sale. After a spate of successful collective sales, both large and small, pundits started to declare that the Singapore property market is officially in an “en-bloc fever”.
Let’s review the deals that were struck this year and consider whether this fever will continue to burn. We will also discuss whether the fever is a totally good thing.
The total value of en bloc deals for 2017 has already hit $6.1 billion – a figure that could continue to increase in view of additional deals that have the potential to close in the remaining months. This makes 2017 currently the third biggest year for en bloc deals in terms of value, after 2007 ($12.2 billion) and 2006 ($8.2 billion).
This has led to an upbeat sentiment throughout the property sector. Incidentally, in the three months which ended September 30, home prices in Singapore rose for the first time in four years, turning a corner after a record run of consecutive declines.
|May||One Tree Hill Gardens||13 units||Freehold||$65 million||Lum Chang Holdings|
|May||Rio Casa||286 units||99-year||$575 million||Oxley Holdings-led consortium|
|June||Eunosville||330 units||99-year||$765.8 million||MCL Land|
|July||The Albracca||11 units||Freehold||$69.1 million||Sustained Land|
|July||Serangoon Ville||244 units||99-year||$499 million||Oxley Holdings-led consortium|
|August||208 Yio Chu Kang Road||6 units||99-year||$8.4 million||Oxley Holdings|
|August||Tampines Court||560 units||99-year||$970 million||Sim Lian Development|
|September||Sun Rosier||78 units||Freehold||$271 million||SingHaiYi Properties|
|September||Nanak Mansions||36 units||Freehold||$201.1 million||UOL Group Associate|
|September||Jervois Gardens||17 units||Freehold||$72 million||SC Global|
|October||Amber Park||200 units||Freehold||$906.7 million||Hong Leong Group|
|October||Normanton Park||488 units||99-year||$830.1 million||Kingsford Huray|
|October||Changi Garden||72 units||Freehold||$248.8 million||Chip Eng Seng Corp|
|October||Florence Regency||336 units||99-year||$629 million||Logan Property (Singapore)|
|October||Dunearn Court||12 units||Freehold||$36.3 million||RH Central|
Among the en bloc deals closed this year, the record $906.7 million that the joint venture between units of City Developments and Hong Leong Group paid for Amber Park stands out. This is the most a freehold site has ever raised in a collective sale.
Developers have demonstrated their ability and willingness to fork out these huge amounts of cash for residential properties, leading to many other properties being put on the market in hopes of selling collectively and earning a handsome margin.
Traditionally, en bloc sales create a positive ripple effect in the property market.
When existing residential sites are taken over and redeveloped, fresh value is created. With contemporary design features and a more “optimised” housing layout, units in the new development will be able to sell for much higher prices as a whole.
For the residents who sold their properties en bloc, they will likely need to look for an alternative property to live in or plough their dollars into for investment. This means that there will be a large influx of cash-rich property hunters, which is good news for everyone in Singapore who has a property for sale.
Buyers and investors who have taken a wait-and-see attitude may be more encouraged to dip their toes in the property market now!!
Looking in all aspects, perhaps you might want to have an open mind to discover what are the options available for u today? Will these options change in 2018?
This could make a big changes to your FUTURE!!
Contact us NOW!
We will equip you with the knowledge and effective strategies to make your right and benefit you in long run!