Singapore’s property market has showed signs of stabilising and the collective sales fever is now receding, according to National Development Minister Khaw Boon Wan in his latest blog post.
“En-bloc activities reached feverish heights in 2006 and 2007, when some 10,200 housing units were sold for redevelopment. This added stress to an already hot property market as housing units were removed from the market, and displaced owners or tenants had to look for replacement properties to stay and invest in, pushing up property and rental prices,” he wrote.
He noted that en-bloc has its pluses and minuses and it can “rejuvenate the city by removing old and dilapidated buildings.”
“But if done excessively, en-bloc activities can waste resources, if relatively new buildings are prematurely demolished.”
Not everyone favours living through an en-bloc exercise, said Mr Khaw.
“Some owners resent losing the home and community they have grown to be comfortable in. In some instances, neighbours have turned against each other in the lead-up to obtaining the requisite 80 percent signatories.”
Last year, the total number of properties sold in the en-bloc market reached 1,400 units, significantly lower compared to the peak in 2007.
“It looks like the en-bloc fever is receding. If so, it signals the increasing stabilisation of our property market,” said Mr Khaw.
“This will be a good development for Singapore in the Year of the Dragon.”
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