Now, it looks like the collective-sale fever has hit again, with deals flowing fast and thick in the past two months. The fever last swept Singapore in 2011 before property cooling measures introduced in 2013 cooled it.
Seven residential developments and an industrial complex have already been sold en bloc – far exceeding the three deals done in all of 2016. Among them, S$970m Tampines en-bloc deal poised to be biggest in a decade.
The seven collective-sale transactions this year total S$2.5 billion in value, plus 6 more properties already put up for en bloc tender and awaiting their outcome, potential en bloc deal value could exceed S$5 billion, more than five times of last year’s S$1 billion.
Just announced today, the tender for the collective sale of Normanton Park, near Science Park and Kent Ridge Park, has been launched and it took a mere 11 days to get 80% consensus from owners. The reserve price is S$800 million.
On top of this, there are over 30 other properties reportedly at earlier stages of the collective-sale process. They include former HUDC estates like Ivory Heights, Pine Grove, Laguna Park and Chancery Court; privatised government projects Lagoon View; and 99-year leasehold condominiums Chuan Park, Thomson View and Pearl Bank Apartments.
What’s driving the resurgence in collective sales? Rising optimism in the property market, still-low interest rates, brisk new home sales and the limited supply of land for development.
Analysts expect more such deals to come as home owners look to cash in on the fever.
If you are one of those who hope for en-bloc windfall, you may take note of these factors that increase condo’s possibility of being en-bloc. Age (older developments have a higher probability); Number of units in the development (smaller developments have a higher probability); and Plot ratio enhancement ( the development has not built up to its allowed plot ratio yet)
You can also check out below website for en-bloc potential reference.