What we can expect in 2018?

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.

En Bloc 2017: A Year In Review

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.

Why People Are Excited About The En Bloc Fever

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.

In the near future, how much do you think the launching price will be?

The Strong Signal is here…

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!

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