Recent candidates joining the enbloc trend include Braddell View, Pine Grove, Changi Garden, Amber Park, Jervois Gardens, Florence Regency and Normanton Park.
The real estate developers — those from China in particular — has felt that there are good profits to be made from Singapore’s red hot enbloc market. Many developers have historically been comfortable with the en bloc procedure, a process that was cumbersome and protracted than the purchase of government land which is straightforward in the tendering process.
Among the major elements affecting an en-bloc sale is that the plot ratio of the land, which is decided by the authorities through the URA Master Plan. En bloc sales’ logic is such that in land rare nations, or populated cities, the tides of time will lead areas and neighbourhoods to grow at different speeds. A committee must be formed, and the sales committee has to try to convince folks to sign up for Collective Sale Agreement. For en bloc sales, the date of arrangement or agreement denotes the date when the Collective Sale Committee awards the site. Such sales supply a useful way to optimise the use of property, allow elderly advancements to make way for new designs that appeal to today’s buyers, and possibly even provide “green” attributes.
The Ministry of National Development said the increase in government land sales and enbloc sales was needed to help ensure “an adequate pipeline distribution of new private housing units to satisfy the needs of the population.” But with a likely growth in supply of new jobs coming into the market within the next couple of years arising out of these en-bloc activities, the way the future market will respond to home costs that may increase in tandem with tender prices remains to be seen.”
In May, Qingjian Realty purchased HUDC estate Shunfu Ville at a price of S$638 million. Shunfu Ville deal has resurrected collective sales from the doldrums which it’s been consigned to. The Pearl Bank Apartments is among the residential buildings with 3 recent enbloc attempts which failed. With only 52 years of lease left on its 99-year lease, it remains to be seen if the 4th attempt would be go through.
In 2nd half of 2017, the market saw the completion sale of enbloc sites Sun Rosier and Jervois Garden, which are two freehold websites that closed on 21 and 26 September, respectively. After a failed attempt at an en bloc sale in 2014, the owners of Spring Grove condominium in Grange Road are searching for law firms and also a promotion agent that could help them market the estate to get at least $1 billion.
Three bidders for Florence Regency, a privatised HUDC estate in Hougang, are refusing to raise their bid prices to match the S$629 million evaluation for its growth, signalling that — even amid enbloc euphoria as developer fear a possibility of oversupply in the region. Constructed in the late 1980s, Florence Regency includes 336 units of maisonettes and apartments.
The 6th successful en-bloc sale is the privatized HUDC estate Serangoon Ville, which sold for $499m, well above the $400m to $430m the owners had been expecting.
A successful en-bloc sale requires not only a clear appreciation of what is driving the market and real ground up experience is required. In addition, the marketing agent have to show sincerity, patience, understanding and an ability to relate to and address the unique needs of every home owner in the developments so as to ensure that it is a win-win proposition for all parties.