Dec 21, 2010

The total amount of collective sales transactions in Singapore in the first 11 months of the year reached S$862.3 million, up from S$176.3 million in 2009, according to data released by the URA.

So far, the most expensive transaction in the en bloc market this year was the Meng Gardens Apartments, which changed hands for S$137 million.

However, several properties are expected to be up for sale next year, with an asking price of more than S$500 million. For instance, the Pine Grove building has already secured the 80 percent approval from owners for an en bloc sale, and it is said to have an indicative price of about S$1.7 billion. If successful, it would be the most expensive en bloc sales deal in the country. Hawaii Towers is another property that will likely attract serious biddings next year, with an indicative price of S$700 million.

Singapore developers who abandoned the collective sales market after the global economic crisis have returned this year. “The robust housing sales resulted in continued developers’ hunger for development land – notice Tuan Sing’s entry back to the market after so long,” said Mr. Colin Tan, head of research and consultancy at Chesterton Suntec International.

While many analysts expect en bloc sales to double next year, some are still wary that the future supply of land sites under the GLS programme may provide competition, as the government is expected to release up to 30 land sites under the confirmed and reserved list.

But most analysts are optimistic and said the en bloc sales market will still surge despite the GLS land releases.

Ms. Christina Sim, director of investment sales at Cushman and Wakefield, said the “en bloc sale sites are still in very prime locations, you don’t get GLS sites in such areas any more.”

“A lot of GLS sites are in outer central region areas. For developers who are land banking, I think there is a market for the mid-to-high-end range of properties,” she added.

Info courtesy - Propertyguru