Raintree Gardens was one of the successful en bloc properties this year.
Market watchers expect more residential properties to go en bloc in 2017, following the success of three collective sales this year, reported The Business Times.
“Next year, I expect more — and a wider range of — offerings in the market, mainly of small- and medium-sized en blocs, which should find takers among developers who are keen to have a new project to work on, as long as they are realistically priced,” said JLL International Director and Head of Residential Karamjit Singh.
Notably, Raintree Gardens in Potong Pasir was acquired by a joint venture (JV) between UOL Group and United Industrial Corporation in October for S$334.2 million, Harbour View Gardens in Pasir Panjang was purchased by Roxy-Pacific Holdings in August for S$33.25 million, and Chinese developer Qingjian Realty bought Shunfu Ville in May for S$638 million.
Singh attributed this year’s pick-up in en bloc deals to development site shortage, recovery of residential outlook from negative to neutral-positive, as well as the realistic pricing and strong attributes of en bloc sites offered this year.
The collective sale committee (CSC) for Lakeside Towers in Jurong, for instance, has invited seven legal firms and 14 property consultancies to submit proposals for consultancy services to execute the en bloc sale process. The CSC is now going through the tender submissions, after which they will draft an en bloc sale agreement with a reserve price.
“We reckon that $250 million to $300 million in tender price should be comfortable to a single developer,” said the CSC chairman Simon Lee. With a balance lease of 58 years, the 144-unit project at Yuan Ching Road has a site area of 153,237 sq ft and a plot ratio of 2.1.
Projects expected to take the en bloc route by Q1 2017 include the 12-unit Villa D’Este on Dalvey Road in prime District 10, and Cairnhill Mansions in District 9. Other potential collective sale candidates include the 330-unit Eunosville, Rio Casa (a 286-unit privatised HUDC estate at Hougang Avenue 7, Dunearn Court in prime District 11, and One Tree Hill Gardens in District 10.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories, email cheryl@propertyguru.com.sg
