Collective sales in Singapore see surge in 2016
Collective sales in 2016 report almost double of sales in 2015 despite the decrease in land supply at the biannual sales programme. So far, there have been 2 en bloc deals transacted at a total value of S$671.25 million from residential estates Shunfu Ville and Harbour View Gardens. Compared to last year, the only transaction worth S$380 million came from Thong Sia Building. A decrease in land supply under the Government Land Sales (GLS) programme led to stiffer competition for land, thus resulting in increase in sales.
The price of the Shunfu Ville collective sale was a 9-year high – at S$638 million earlier this May.
The number of collective sales deals in recent years has reduced drastically, and this could easily be attributed to the cumbersome collective sale process. Additionally, the risk of running into Additional Buyer’s Stamp Duty is also high if the developers are unable to build and sell all the units within the stipulated 5-year time frame.
Apart from the sale of both Shunfu Ville and Harbour View Gardens, Raintree Gardens, a HUDC development in Potong Pasir is potentially the next successful collective sale transaction. With an asking price of at S$315 million, the development’s tender will conclude on 5th October 2016. According to analysts, Raintree Tender should expect substantial interest with its prime location and asking price.
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