The 37-storey horseshoe-shaped building comprises 280 apartments and eight commercial units. It sits on an 82,376 sq ft site and has a 99-year lease with effect from June 1970. (Photo: Colliers International)
The number of collective sales here have already reached the highest in two years, reported the Singapore Business Review, citing a report from Cushman & Wakefield.
Compared to one deal for the whole of 2015 and six in 2016, 20 existing housing projects with a total of around 2,900 units have changed hands via this method so far this year.
“The en bloc market has kickstarted a round of frenzy buying, as fence-sitters fear that private home prices could soon rise beyond their reach, once developers gear up for new launches next year,” said Cushman’s Research director Christine Li.
Moreover, collective sales in Singapore have already exceeded the $6.34 billion figure calculated by the property consultancy as of 15 November 2017.
Among the top deals this year, are the $728 million and $907 million sales of Pearlbank Apartments and Amber Park respectively, with the latter located on one of the biggest sites measuring 213,675 sq ft.
According to United Overseas Bank, the high number of successful en bloc sales could spur homeowners to jump on the bandwagon in an attempt to monetise their properties at a good price. The lender even thinks that the collective sales boom could extend for another 12 to 24 months with about 60 to 80 projects at some point in the collective sales process.
Meanwhile, the continued rise in en bloc transactions came despite the Monetary Authority of Singapore (MAS)’s warning that the redevelopment of these sites is expected to lead to an additional 20,000 new private dwellings. This figure is projected to result in a two-fold surge in the number of unsold homes entering the market over the next one to two years.
In regards to the anticipated price hike stemming from the collective sales frenzy, Minister of National Development Lawrence Wong believes that this may not happen as an uptick in valuation depends on demand/supply factors during the launch of these new developments.
This article was edited by Keshia Faculin.