Recently there have been quite a few blockbuster En Bloc and Government Land Sales (GLS) deals.
2018 – 26 Enbloc – SGD8.28B (Only 4 months)
2017 – 34 Enbloc – SGD8.7B
2007 – 143 Enbloc – SGD12.3B
Each En Bloc deal is significantly higher than what it was in previous history.
Why? The Singapore government reduced the supply of residential land under the GLS programme, resulting in more intense competition and bidding for sites among developers. And with developers land banks running low, they are aggressively searching for ways to top them up!
To understand how aggressive demand has been by developers, let's take a look at the West Coast Vale area.
3 Adjoining plots of Sale were sold in GLS over a period of 3 years:
1. Parc Riviera site (Aug 2015): $551 per sq ft per plot ratio (psf ppr)
But all this optimism has caused some to question, "Will the new "crazy high" prices be accepted by the market?
A recent new launch EC in Sengkang, Rivercove, broke the previous record for EC launch prices by 20%. And how was the turn out?...
And as we all know, ECs are only available for Singaporeans to purchase. This shows a strong local population demand, and that Singaporeans are starting to accept the rising property prices as a norm.
Still not convinced? Lets look at another development, Park Place.
Park Place Residences was first launched in March 2017, and during the initial phase 210 units or 50 percent of the available units within one day at a median price of $1,805 psf. Around 95% of the buyers were Singaporeans and Permanent Residents.
In Phase 2 of Park Place Residences launch, developer launch units at higher prices of $1850~$2000 psf! But....
Within one weekend 68% of the remaining units were snapped up by buyers!
And all this market optimism has continued to bolster Developers aggressiveness and postiveness towards the medium term outlook for the property market. Feel free to visit my myth-busting series or read about other interesting topics from my blog!
With all this information in mind, you might be thinking...then when should I enter the market?
DO NOT go in blindly, make sure you have done all your proper financial calculations, research and background analysis before making your purchase.
As a quick guide, we have created a simple guidebook for you. Click here to download.
Are you still having doubts? or feeling on-the-fence about this? We have prepared a market report to address common concerns from homebuyers and investors; Eg. Will there be an oversupply, The rental market is weak, too much additional stamp duties...etc
Contact us today and find out for yourself, the Facts and Data about the current and future direction of the market.
"The key to the growth of the future - is knowledge"
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