Success of collective sales continues

2017 continues to be a good year for the collective sales market with Shunfu Ville given the go-ahead from the Court of Appeal last week and the sale of One Tree Hill Gardens site for $65 million this year.

OneTreeHillGardensThe Lum Chang Group has purchased the latter freehold landed residential development site near Orchard Road at $1,644 psf. Its proximity to Orchard Road makes it a prime site that is rare also because of its freehold status. It is of sizeable land ratio and developers have expressed considerable interest. The site was initially put up for sale at $72.8 million. Despite the $7.2 million shortfall, individual owners of the 6 maisonettes and 7 apartments will still receive $4.3 to $9.1 million depending on the size of their units.

Under a 2014 masterplan, the freehold site is zoned for 2-storey semi-detached residential use within a 39,063 sq ft land area. What it could potentially yield are 8 semi-detached houses, 5 bungalows or 10 semi-detached homes and 3 bungalows. With such landed properties near Orchard Road a scarcity, the freehold homes will no doubt receive much interest from investors and high net-worth buyers.

venturaheightsWhile the market is still tender from the previous years of slow growth, developers are beginning to replenish land stock and collective sales may be their means to the ends as the government has recently cut back on the release of land plots. Though price-sensitivity continues to rule developers’ bids, the collective sale market will be active this year especially with more home owners enquiring about en bloc sales and the sale of Eunosville and Rio Casa last month.

New private homes sales up 84% in a month

Certainly not a margin to be scoffed at. At a 3-year high, new private non-landed residential properties have been enjoying a cool ride on the property wave. The National Development Ministry reported numbers of up to 26,800 HDB flats, 22,400 non-landed private homes and 1,100 landed homes nearing completion by 2014. Though these numbers were pre-dated to before the announcements of the home loans curb, industry players are nevertheless positive about the future outlook for the real estate market.

Skies Miltonia private condominium in Yishun with an expected TOP of 2016. 

A year-on-year comparison with 2010 will show that the number of new home sales by developers within the first 9 months of this year has already topped that of a full year in 2010 – and we still have 3 months left of 2012. Knight Frank research head, Png Poh Soon is expected the year’s total to reach 21,000.

Reasons for the pickup of sales in September could be due to the comparably low number of sales in August due to the Hungry Ghost Month as well as the narrowing gap between resale and new units. But this might mean that the pricing of new launches will determine their uptake and demand in the months to come.