amber park sold en bloc

Developers replenishing land banks after pent-up demand in en-bloc transaction

Approximately 2,700 private residence have been sold in 2017 via en bloc deals to date (6 Nov).

It was only around 600 dwellings in 2016 and attributed by builders replenishing their land banks due to the extremely successful real estate sales the year before.

Previous State housing project Normanton Park was sold for $830.1 million in October 2017, the best showing land rate for a collective sale site based on 99 years leasehold. Freehold Amber Park residence was sold for $906.7 million, setting a record for Singapore’s largest collective sale in monetary values while a former HUDC property, Tampines Court fetches the biggest deal in August for $970 million.

Promising sales increase of new launches by developers have brought the total unsold supply to about 17,200 units as of today, down from the previous 40,000 unsold supplies in 2012.

Many of the owner’s main motivation in initiating en bloc sales to monetise their ageing residential assets were due to the strong sales seen in 2016 and early 2017. However, will the current en bloc fever be sustainable? Higher than valuation bids coming from developers will not necessary mean higher prices down the journey because they have to sell their housing units within 5 years from awarding of each particular land site, therefore pricing them reasonably for future buyers will definitely lift some pressure off them and not forgetting, they are subject to ABSD (Additional Buyer’s Stamp Duty) too!

Will there be a need to increase the land sales in meeting all developers demand?

The State will continue to monitor the overall developments closely since all en bloc sale sites sold since 2016 will eventually be redeveloped and made available in the market for the next few years.

Quantum of Government Land Sales (GLS Programme) will also be decided by other factors such as the population growth and market conditions going forward in-order to maintain a well-balanced property market.