Property Enbloc Fever Back
- Shirley and Pamela
- Feb 12, 2021
- 2 min read
Going by how the property market has continued to thrive in spite of the economic downturn, an en bloc fever may very well be on its way to returning, to fulfill buyers’ demand for property.
The number of transactions of new private property went up from 9912 in 2019, to 10,024 last year. The greater transaction volume drove the demand of property against the backdrop of the pandemic. The strong demand for property has led to the number of unsold residential units under development, falling to 26,600 in the third quarter of 2020. This could see a revival of an en bloc cycle, with the need to replenish the supply for land sales. The undersupply in the property market has foreshadowed the possibility of en bloc taking place on a large scale, this year.
The last time Singapore had witnessed an en bloc fever was in 2017 to 2018, with more than 60 projects put up for collective sales. With the current lack of property supply, would there be a new wave of en bloc hype coming up this year?
The regulated residential supply released under the government land sales (GLS) programme, and the strong competition for the land supply, have prompted developers to turn towards en bloc to acquire more land for their new project developments. With Singapore’s land prices increasing every year, new land sales are expected to drive up developers’ higher bidding prices.
On top of the increase in land prices, the disruption of the supply chain caused by Covid-19 has also led to an increase in the cost of construction materials, by 20 to 40 per cent. In other words, prices of upcoming launches would definitely rise in line with the higher bidding land prices.
With all the data and insights, Wonder Homes will always try to provide our clients an advantage through advising our clients on the best point to enter the market, before prices for properties peak. If you’d like to have a share of the investment pie, speak to us! We will share with you, our insider info and data collected for 2021. Visit our website at www.wonderhomesg.com.
Pamela Tan: 9457 6525
Shirley Wang: 9436 1909
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