Collections Of EnBloc News in 2019
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At the beginning of the year, the market might remember gazing on En Bloc Singapore 2018 with starry eyes. With a flourishing economy, another stellar year was predicted for En Bloc market following the boom in 2017. And, it did live out the expectations until first-half of 2018.
With 38 properties sold at S$10.8 billion until the last week of December, the En Bloc Singapore 2018 should clearly have been one of the most successful years. This figure surpasses the previous year’s total of 28 properties sold at S$8.7 Billion.
But as things are looking good, the July 6 new cooling measures by URA marked the dividing point of En Bloc Singapore 2018 history into two.
The hot En Bloc market was dampened to become a drastically cold one after July 6. Out of the 38 total sales that happened in 2018, only three were done, after the July 6 measures came into effect.
Had it not been for the unprecedented July 6 measures, En Bloc Singapore 2018 would have effortlessly surpassed the highest recorded so far – the S$11.51 billion sale in 2007.
Nevertheless, the over-speeding in first 6 months of 2018 caused authorities to apply brakes, to avoid an inevitable pitfall, which the market thankfully acknowledges.
Tracy Goh of PropNex Realty believes that with the right reserve price, residential en bloc is still possible.
The main reason that more than 60 sites have no bid is because of unrealistic reserve prices.
In June 2018 alone, without the cooling measure which came to the market on 6 July 2018, there were already no bid for 15 sites out of 19 sites.
The new ABSD on residential en bloc sites have just shifted the focus to commercial en bloc as there is no ABSD and no time frame for developers to sell the commercial properties.
The 25% remissable ABSD is only applicable on residential en bloc if they are unable to sell within 5 years from their acquisition.
The commercial sector also get a lift as the prices are still less compared to acquiring assets in neighbourhood countries like Hong Kong.
And our 3.3% GDP performance in 2018 still makes Singapore vibrant and attractive.