Singapore is suddenly awash with properties up for enbloc sale.
A last splurge for developers for 2011, and possibly the last before the market cools – that's what some owners of en bloc properties are hoping for.
But, far from a resurgence, experts have dismissed any notion that the sudden rash of sales indicates a rebound in the market.
It is certainly not a resurgence of overall activity… It's probably a coincidence that there are several en blocs launching or relaunching their tenders.
In fact, higher stamp duty on sales has reduced the profit potential for some investors.
The recent new launches have not just achieved new high prices but also sold well at a very fast pace, so this has caused the developers to replenish their land bank and for freehold land which can only be replenish through the en bloc market.
Growth in the en bloc property market is slowing down. And unless the bigger properties find their unique selling point and maintain realistic expectations, chances of a successful sale will be pretty low.
Global economic uncertainty has played a big role in clouding the outlook, with credit from banks harder to come by for the residential market.
En bloc sales in the third quarter almost halved from the previous three months to S$580 million, with larger properties valued at over S$300 million meeting repeated failures.
The new crop of en bloc projects may not find buyers for another year, and with so many up for grabs, developers' money may be thinly divided.
Source : Channel NewsAsia – 19 Oct 2011
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