Normanton Park is an upcoming residential condo project (same site as former Normanton Park) and will be expected to be a blockbuster in 2021. Click to visit website & receive ebrochure & floorplans
URA recently announced the government land sales (GLS) tender for a mixed-use site at Tanah Merah Kechil Link closed with 15 bids on Oct 29, while an executive condominium (EC) site at Yishun Avenue 9 drew seven bids at the close of its tender on the same day.
Huttons Asia real estate adviser Kiwi Lim believes that such a rare strong turnout of developers for these two plots of government land sales (GLS) sites in OCR locations is a good indication that most developers in Singapore are running out of land banks for future residential condo launches. According to Kiwi Lim, developers in Singapore have launched almost all their land banks secured during the en-bloc frenzy of 2017 and 2018, with transaction values at S$8.3 billion & S$10.3 billion respectively.
Huttons Asia real estate adviser Kiwi Lim believes that such a rare strong turnout of developers for these two plots of government land sales (GLS) sites in OCR locations is a good indication that most developers in Singapore are running out of land banks for future residential condo launches. According to Kiwi Lim, developers in Singapore have launched almost all their land banks secured during the en-bloc frenzy of 2017 and 2018, with transaction values at S$8.3 billion & S$10.3 billion respectively.
According to analysts who are familiar with the Singapore property market, the muted collective sales market could see a revival in 2022, as developers turn to the private residential scene to feed a growing appetite for land.
This comes as the property market has remained resilient in the face of the COVID-19 pandemic and consequent economic uncertainty, said analysts.
This year saw just two en bloc deals totalling S$77.2 million, Yuen Sing Mansion in Geylang, which was transacted in August, and adjoining sites Fairhaven and Sophia Ville, which were taken off the market in early December. Last year, Roxy-Pacific Holdings forked out S$93 million for 15 terraced houses in the Guillemard Road area and a consortium bought a plot with 11 homes near Haig Road for S$32.8 million.
This comes as the property market has remained resilient in the face of the COVID-19 pandemic and consequent economic uncertainty, said analysts.
This year saw just two en bloc deals totalling S$77.2 million, Yuen Sing Mansion in Geylang, which was transacted in August, and adjoining sites Fairhaven and Sophia Ville, which were taken off the market in early December. Last year, Roxy-Pacific Holdings forked out S$93 million for 15 terraced houses in the Guillemard Road area and a consortium bought a plot with 11 homes near Haig Road for S$32.8 million.
The Ryse Residences is an exciting upcoming condo at Pasir Ris Central by reputable developer Allgreen. Click to visit the website, receive ebrochure & floorplan as well as register for soft launch invitation.
Many agree that developers are running out of stock and with current unsold private residential condo units in the market standing at around 26,600 units as at Q3 2020, property experts felt that the start of the previous en bloc cycle was in 2Q 2016, when inventory fell to 23,300 units… That may serve as benchmark to the point at which developers would start looking for land.
The GLS supply is very competitive and there are many eyeing it. For smaller developers, it’s a bit harder to compete, so they may go for en bloc sites as an alternative source. Developers need to start shoring up their land banks to plan for future projects, and en bloc sales are a “quick way” to do that.
While this could be good news for owners looking to sell, the return of the en bloc market could also drive up overall land and property prices. However, the upcoming interest in the collective sales market may not match the extent of the fervour seen in 2017 and 2018, due to more economic uncertainty.
The GLS supply is very competitive and there are many eyeing it. For smaller developers, it’s a bit harder to compete, so they may go for en bloc sites as an alternative source. Developers need to start shoring up their land banks to plan for future projects, and en bloc sales are a “quick way” to do that.
While this could be good news for owners looking to sell, the return of the en bloc market could also drive up overall land and property prices. However, the upcoming interest in the collective sales market may not match the extent of the fervour seen in 2017 and 2018, due to more economic uncertainty.
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