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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

The dreamers dream on....

S'pore could see first en bloc sale in a year by year-end
ChannelNewsAsia - 16 June 2009

Well, there will be some estates who set their reserve prices now in the downturn - and will be surprised YET AGAIN when their en bloc sale is finalised 3 years down the road when property prices could very well be higher! How many past en blocs set benchmark reserve prices and attained benchmark prices at the time of sale only to find that their 'benchmark' was a mirage, a sum quickly surpassed in an escalating market. Owners of fine private apartments reduced to joining the HDB ranks yet again. It may have taken 10 years to gain that private property - but only 3 to lose it in an en bloc.
What is 30% premium now? What is 80% even? All that matters is that AT THE TIME OF COMPLETION OF SALE 2 to 3 years DOWN THE LINE - that is; after the sale has been cleared by the STB and owners get their sale proceeds in the bank, they have sufficient cash and CPF left to buy a replacement unit EQUAL TO or BETTER THAN their present unit in the SAME AREA. Bear in mind, also, an owners age and ability/inability to secure a mortgage. There should be no forced downgrading.

Why would developer-buyers buy extensively now?:-
1) Their land banks are relatively full, though they may still sniff out a few bargains from sellers taken in by the latest property agent spiel - 'catch the next wave' or 'lower your RP by 20%', and my personal favourite : 'sell now before the developer's money runs out'
2) The economic fundamentals are not improving
3) There is still the none-too-small matter of a glut of new units downstream as estates, such as Farrer Court, Gillman Heights & Leedon Heights have been sold en bloc but have not yet even been demolished. Some estates have been leased out in the interim. According to our Minister of National Development, Mr. Mah - over 40,000 new units will be on the market in the next 3 or 4 years.
4) The new flipper tax may keep some speculators away for the time being (4 years maybe?).
5) 99 year properties will be less attractive as they have a short time frame for development.
6) The developers know there is no need to rush in as land does not disappear.
Straits Times - 10 July 2009
Straits Times - 31 July 2009
The LTSA rules are still full of loopholes for the unscrupulous to exploit. Owners have become a teeny bit smarter which may translate into either more transparent and honest transactions or (more likely) highly contentious battles between the minorities and majorities right from the word go.
Channel NewsAsia – 16 July 2009.
Business Times - 16 July 2009
From 'seeing one en bloc deal' to ' 5 to 10' is quite a jump. By deal, they must only mean the number of estates jump-starting their en bloc processes being ramped up. It's a never-ending treadmill for some estates. The flippers especially have an interest in seeing things escalate as they have a 01 Jan 2010 deadline to get their deals through before they come under the IRAS microscope.

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