The nine en-bloc properties sold so far for this year pales in comparison with the 29 properties transacted over the same period last year.
Developers have become noticeably cautious, following the recent cooling measures as well as the requirements to build and collectively sell new units within five years.
However, experts noted that interest in mixed-use en-bloc developments, particularly those in the outer regions, is picking up very well. This time, interest is evident in mixed-use properties that include residential units and commercial space.
Among the mixed-use developments that gained the attention of developers is Novena Ville (pictured).
According to Credo Real Estate, which specialises in en-bloc sales, mixed-use en-bloc property sales have increased by 10 to 15 percent in the past year.
“There is also another hybrid segment of the market, involving mixed-use (property) where the developer can explore options including having some retail component, commercial component,” said Karamjit Singh, Managing Director of Credo Real Estate.
“That is beginning to get some traction nowadays because it opens up opportunities for developers to create new products, to capitalise on changing investment patterns and also changing lifestyles.”
Weak interest in en bloc transactions has been partly attributed to high asking prices from sellers.
“It is quite different talking about en bloc 15 years ago and today, because en bloc today…the value of the property has gone up and replacement cost has become a lot higher, so increasingly owners do not want to participate anymore,” noted Norman Ho, Partner at Rodyk & Davidson.
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