En Bloc Sale Revival 2021 Singapore

Collective sales market has been revived in 2021 as developers are looking at private residential properties to satisfy their growing interest in land acquisition.

Developers usually start to pour huge interests in en bloc market when their current inventory runs low and also when things start looking positive all around.

The new launch sales rise in 2020 is one of the positive factor’s despite of the pandemic the world is currently witnessing.

Marketing experts has been observing the on-going developments in the real estate have also pointed out how recent tenders issued under the GLS or Government Land Sales was hotly contested.

One example was the Tanah Merah Kechil Link that attracted as many as 15 bidders and a new record price of $930 psf ppr was set in Tanah Merah.

They further observed that the GLS programme was somewhat conservative which naturally renews interest in the en bloc market.

The GLS supply is usually competitive and many show interests. Furthermore, since it gets hard to compete for small developers, they tend to go en bloc market for generating alternative source.

Developers also tend to lean towards collective sales as there is more variability of the location, tenure can be 999-yr leasehold or freehold which is distinctively different from GLS land sales which are 99 years leasehold tenure.

This then unlocks collective sales arbitrage and is what likely to be seen in 2021-22.

Just as everyone thought 2020 is a doom scenario for collective sale, Yuen Sing Mansion in Geylang was picked up by a buyer and sold en bloc for S$15.2 million.

It is followed by Sophia Ville & Fairhaven combine site in district 9 which was grab by a developer for S$62 Million.

The largest transaction in the private residential sector was seen in November when Roxy-Pacific Holdings spent S$93 million to buy the Guillemard Road 15 terraced houses.

In November again there was another major sale when 11 houses near Haig Road were sold to a consortium for S$32.8 million.

Towards the end of the year, another en bloc site in Geylang district “Advance Apartment” found buyer and sold en bloc for S$26.5 million.

And 93B, 93C and 95 Lor N Telok Kurau combine site was also sold $23.6m by PropNex when tender closed on 29 December 2020.

These deals showed how much the developers thirst for more lands and will continue their land acquisition in the months to come.

It is heavy recommended that you go for collective sale at this point. Reason why because this is the en bloc cycle everyone is waiting for.

This is the best time that you can sell your property and at the same time fetch some nice profits in the collective sale market.

As developers have shown their confidence and interests in the residential collective sales recently, this is the right time to put up your properties for sale.

You do not want miss this golden opportunity and 2021 might be the year you have been waiting for.

Consult your marketing agent now: PropNex En Bloc Service

Since there is an economic uncertainty looming around, small sites eventually tend to be their favourite as it poses “Less Risk Investment”.

Cooling measures such as non-remissible component and Additional Buyer’s Stamp Duty are likely to increase the upfront cost of any developers.

To minimize risk, developers are more likely interested in projects with less than 500 units.

It is understood that collective sale for small and medium projects are easier to organize.

Often, some small sites come with 100% owner’s consensus which reduce the en bloc process time a lot and hassle for the developers.

This is not to say that bigger sites are not attractive to developers totally.  At the right location and the right price, developers can also form consortium to buy big lands that are competitively priced.

Contact Ms. Tracy Goh now for a private and confidential discussion.