En bloc sales have seen a notable increase in the last few weeks, with a total of eight sites up for en bloc sale since January.
However, analysts claimed the figures were still not positive compared to the prospects, with the demand for such sites staying soft. In fact, collective sales on private properties are receding, according to Khaw Boon Wan, Minister for National Development in a blog post.
While this could signify a more stable property market, the emerging trend suggests a different story.
Of the eight en bloc launches so far, five sites were offered last week. The number reflects almost half the en bloc sites offered for sale in Q1 of 2011. A total of 18 sites were put up for collective sale in Q1 2011.
According to analysts, the increase is backed by rushed sales over expectations of a worsening market sentiment later in 2012.
Moving forward, the ambiguous economic outlook may affect buyers’ sentiment.
“More importantly, it’s that they would need to complete the entire process of buying a site, building it and selling out all the units within five years from the time they enter the contract with the sellers,” said Karamjit Singh, Managing Director at Credo Real Estate.
He added that the situation will be more manageable for small en blocs but is “a very tall order” for medium to large en blocs.
Related Stories:
Credo data suggests pattern in property prices
More buyers shifting to non-HDB homes
REDAS gives a dull note on property sentiment