Collective sales market has been revived in 2021 as developers are looking at private residential properties to satisfy their growing interest in land acquisition.
Developers usually start to pour huge interests in en bloc market when their current inventory runs low and also when things start looking positive all around.
The new launch sales rise in 2020 is one of the positive factor’s despite of the pandemic the world is currently witnessing.
Marketing experts has been observing the on-going developments in the real estate have also pointed out how recent tenders issued under the GLS or Government Land Sales was hotly contested.
One example was the Tanah Merah Kechil Link that attracted as many as 15 bidders and a new record price of $930 psf ppr was set in Tanah Merah.
They further observed that the GLS programme was somewhat conservative which naturally renews interest in the en bloc market.
The GLS supply is usually competitive and many show interests. Furthermore, since it gets hard to compete for small developers, they tend to go en bloc market for generating alternative source.
Developers also tend to lean towards collective sales as there is more variability of the location, tenure can be 999-yr leasehold or freehold which is distinctively different from GLS land sales which are 99 years leasehold tenure.
This then unlocks collective sales arbitrage and is what likely to be seen in 2021-22.