The full article can be found in Lianhe Zaobao, Finance Section, Page 22, 3 July 2018.
The Singapore collective sale market is raging with bulls and developers are given the deluge of collective sale sites on the market. Developers have been paying premiums for sites that offer excellent attributes, which contributed to the strong collective sale market growth. As developers are now satisfied with their landbank, they may no longer be interested in sites that are priced at a premium.
Most collective sale projects were located in the central district. Out of the 34 projects, 18 projects were located in districts 9, 10 and 11, which accounted for 60 per cent of the total collective sales transaction.
Holland Village itself has 6 collective sale projects, with freehold Tulip Graden sold at S$906.9 million in April 2018 as the largest collective sale. Tulip Garden was sold at 20.4 per cent higher than the reserve price. The rest of the projects at Holland Village were sold at more than S$1,500 per square foot. With that, Spanish Village also launched for collective sale with an asking price of S$882 million.
Although there are more projects sold this year, the project sizes are relatively smaller and hence, the supply of new private homes is expected to be lesser than last year.
ZACD Executive Director and Chief Investment Officer, Nicholas Mak said, “The projects that were sold last year are expected to supply 10,600 units. However, there are only 8,700 units supplied in the first half of this year. This is because there were many Housing and Urban Development Company (HUDC) sold last year, and these apartments are large in size and can be redeveloped to supply more units.”
With an increase in private housing supply, Nicholas expects the property market to spend about five years to digest new units. Developers will not easily reduce prices unless there is an economic recession.
“Even in the case of oversupply, developers can digest new luxury properties by attracting foreign buyers,” Nicholas added.
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