En bloc overwhelming sales smashed a performance previous year with more or less 35 developments above $10 billion, so far the highest over decades.
Along with the $8.13 billion for the 27 deals in 2017 plus the $1 billion three transactions in 2016, this whole en bloc loop obtained a total of $19.1 billion for 65 deals alone, in contrast to the usual all-time figure which is $21.8 billion during 2005 -2006Â pattern per Collier’s International record.
Pacific Mansion ranks top for collective sale over the past year. It’s a freehold development in the top-end River Valley areas and acquired for as high as $980 million by the famous and credible Hong Realty, Intrepid Investments and GuocoLand. It was considered the gigantic collective sale over several decades and ranking 2nd highest recorded sale after the $1.34 billion of Farrer Court in 2007.
Both Amber Park and Tampines Court were sold for only $970 million.
Some people believed the existing cycle will continue because it appears like sellers of some developments or units still so positive of selling en bloc even with the presence of cooling measures imposed last 6th of July.
After the implementation of cooling policy, single residential transaction succeeded, the property which has a price of $33.1 million, the Phoenix Heights of 32 units.
Some development’s tender was relaunched at the same price or some much lower. A few mega-sites increases the asking price just to arrived the 80 percent concession in launching a tender.
It’s the same as those people who form their line just to purchase a Toto, said, Alan Cheong, the head of research, Savills Singapore. ” The agent is required to hit 80 percent in order for a tender to be launched or else valuation and all expenditures goes to trash.”
But the experts termed this as pyrrhic victory because developers are foreseen to render mega areas a miss because of the increased costs of land acquisition after the implementation of cooling measures.
The chair of research of Singapore’s Colliers International, Ms Tricia Song, sees the developers stay vigilant in terms of land acquisition, evident in enough supply pipeline coming from tenders of public land and private collective sales areas collected prior to the new cooling policy.”
She said, “In the middle of 2019, with a positive response after the July cooling policy and a presumed a generous economic outlook, thus encourages the developers for a competitive land-banking once more.”
With the cooling market around, the holders of Spanish Village of 226 -units along Farrer Road are heading to sign the supplementary agreement to reduce the high asking price, from $882 million down to more or less $828 million. On March 11 closes the tender and this considered the third try.
PAFS or A Pre-Application Feasibility Study was done by a certain traffic consultant and was able to get in n-principle approval as many as 703 units from the dynamic Land Transport Authority 6th of September 2018, revealed by Edmund Tie & Company’s marketing agent.
Mr Lian of Huttons Asia’s head stressed, “They might hold the best chance because of settling the PAFS, which simply means that the developers have the idea as to the number of units to be built. Plus some bonus, they lower down the asking price.
Ku Swee Yong, the Executive officer of International Property Advisor opposed, “The developer needs to consider the tight competition between the mixed-used Government Land Sales( GLS) around Holland Village plus many en blocs which are completed such as Tulip Garden, plus whether the demand will be addressed before launching a new project.
There are a lot of en bloc developments or project which ended the tender with a zero bid in previous weeks. Such as Leonie Gardens which for the second time being launched again as high as $800 million as a reserve price and which closed without a single bid last January 22. The same thing happened to Horizon Towers, launched for a second chance around $1.1 billion as a reserve price.
Though a smaller area, Park View Mansions, without any single bid closed its tender despite reducing the reserve price which originally from $320 million to $250 million.
A few from mega areas increased the asking price just to comply with 80 percent required to raise a tender. Such as the Pine Grove, increased its price, originally from $1.72 billion jumps to $1.86 billion during the last hour, observing the rule of 80 percent.
Mandarin Gardens also increased its asking price, from a lower price $2.48 billion to a higher price of $2.79 billion around November when the owners found out that the land area was undervalued. Signatures hit 64 percent.
Braddell View, the largest of 18 previously HUDC estates, complied with the 80 percent requirement of $2.08 billion as its reserve price.
But Tan Hong Boon, the regional director of JLL said, ” Many builders or developers aren’t visible at big sites. The risks are too high to gamble because of the big hike of additional buyer’s stamp duty plus given only five years for the chance of selling it.
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