Collective sales of commercial properties saw a considerably rise in the past year as compared to sale of en bloc residential sales following cooling measures that were taken in 2018. This trend is likely to continue in 2020 as well.
According to market analysis data released, as of December 2019, around 40 sites have been launched for collective sale.
The report revealed that a total of 6 sites were sold for a cumulative price of S$490 million and 2 of these 6 sites was completely a residential site.
Sophia View, the residential collective site was sold for S$9.28m in mid-2019 as well as Casa Sophia sold for S$29 million in late December 2019. Both sites are located in prime district 9.
Another block of shophouses and apartments on 2–24 Phoenix Road was bought for S$42.6m in July by Qingjian Realty (South Pacific) Group’s subsidiary holding.
As for the remaining 3 sites that were collectively sold, one was the Min Yuan Apartment which is reportedly being fashioned as a hotel to be run by the Fragrance Group. Additionally, another two commercial sites went under sale in 2019.
It is worth noting that commercial or non-residential sites as well as small sites found more takers and were increasingly in demand by investors and developers alike.
This was mainly due to the huge rise in ABSD or Additional Buyer’s Stamp Duty that is in place since July 2018.
In the first half of 2019, 3 sites were purchased by developers and investors. Two big commercial sites, namely Selegie Centre and Realty Centre together accounted for majority of the sale bringing in nearly S$268 million.
Out of the 40 odd sites that went for sale in 2019, Riverside Piazza located near Clarke Quay whose last date of tender submission was December 19, 2019 has now entering a private treaty negotiation.
Katong Plaza on the other hand whose tender closed on the same date has got an EOI from an undisclosed buyer.