Disclaimer






"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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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.

Market news

Pender Court up for sale again with $100m price tag

This is the estate whose en bloc fell through because the buyer pulled out of the deal - and the owners got to keep the deposit; a cool $250k each. Now they are relaunching at  much higher price.

Collective sales market stays cool

 According to HSR investment sales assistant executive director Jeffrey Goh, many home owners are not keen to reduce asking prices and are in no hurry to sell. They have seen how well new property launches have done and this has ‘given them a lot of excitement’, he said.

But Credo Real Estate managing director Karamjit Singh believes that Mayfair Gardens and Green Lodge are ‘not necessarily representative of the fate of en blocs to come’.
For properties where sufficient consent from owners was obtained some time back, asking prices may not be in line with market conditions, he said.
‘But we are about to see a new wave of en bloc launches by tender in the months ahead, and these will be projects that would have got started end of last year or early this year.’

Are En bloc owners finally becoming shrewder after gaining some common sense? If big and small developers require their land banks to be replenished, they won't always be satisfied with Government plots in out-of-way locations. The owners should hold out and wait for buyers to come a-begging .
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En bloc owners should take a leaf out of the Government's book when it comes to assessing tender bids.  Owners are amateurs at the game and have been told that -"The true value of your property is what the market is willing to pay". It is not necessarily so. The true value of your home  is measured by calculable facts and figures, not by opportunists hoping to get it on the cheap. I say watch out for opportunistic bidding and developers pushing en bloc owners to the wall. Be careful of property agents; their long term interest lies with the buyer rather than the owners  (and who knows what juicy  bonus they get from the Big Boys if they manage to hook the estate and deliver it on a plate to them). 
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There have been two successful  government land sales (GLS) recently in Tampines and in Ten Mile Junction. The Gov did not sell at the first tender, the price offered simply was too low for their liking. They can wait. Owners can wait, too. An interesting little tussle in the media ensued between the Government and the president of the Real Estate Developers’ Association of Singapore (Redas) Simon Cheong, about setting the property market free (from gov intervention) and about who is to blame for rising prices. Really, as if it were that simple. Speculation, kiasuism, government charges, land prices,  building costs, developer greed, money laundering (I suspect) - all play their part. 
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Tampines site gets top bid of $302m

Govt rebuts Cheong’s ‘free market’ theory

A single bid for a Tampines site was rejected in June 2008 for being too low, but was awarded in March at $421 per sq ft per plot ratio (psf ppr) – some 3.6 times higher.
A Ten Mile Junction mixed-use site also had a failed bid of $162 psf ppr in April 2008, but went for $437 psf ppr in February – 2.7 times higher.

"the Government was not convinced that the bids represented fair market value rather than opportunistic bids, as there were very few bids for the sites, and the bids were exceptionally low".

It was the "Government's duty as the custodian of state land to ensure it obtains a fair market price for a site", it added. 

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