More Properties May Be Up For Collective Sales

The property market in 2020 saw a fall in property sales, but has remained above the global financial crisis levels, with approximately $12.2 billion sales made by investors in the first three quarters of 2020, more than the $9.9 billion made in the full year of 2009. This reflects strong investor confidence in the nation’s governance and growth prospects as well as the attractiveness of Singapore’s properties, and this is evinced by the gain in investment sales activity in the previous quarter. Private residential sales have also remained relatively buoyant throughout 2020, with sales increasing consistently since April following the end of the circuit breaker.

Given positive investor sentiments and a healthy underlying demand from buyers as well as the moderately low supply of sites via Government Land Sales (GLS) programme, it is fair to expect an increase in interest towards collective sales from developers looking to stock up their land banks. Smaller collective sales of sites that may yield around 200 units in the price vicinity of $200 million will be comparatively more attractive than larger projects that yield around 1000 units due to higher risks that have arisen due to July 2018 cooling measures, namely the 5-year timeframe imposed on developer sales. 

Two freehold residential sites in District 9, Fairhaven and Sophia Ville, that were put up for a joint tender in August were sold for $62 mil in November. Siglap Shopping Centre, a freehold mixed-use site, was also put up for collective sale via public tender in October and the tender closed on 9 December.