Private home sale to increase next year amid collective sale frenzy

With the collective sale fever forecasted to continue into 2018, analysts expect the potential en bloc sellers to lead a hike in private home sales next year, with prices expanding between four to eight percent, reported Channel News Asia.

Cushman & Wakefield expects at least 44 condominiums to go en bloc next year, which could see over 9,000 potential house hunters.

Among the condominiums expected to take the collective sale, path includes the 528-unit Laguna Park, the 264-unit Teresa Ville and the 120-unit Lakeside Apartments.

This year’s 27 collective sale tenders, to date, saw around 3,200 owners looking for a new place to live.

Edmund Tie and Company research head Dr Lee Nai Jia noted that these collective sales have a “snowball effect”.

“Those who have successfully sold their units will probably buy two, even though they will downsize.”

Lee believes the suburban and HDB resale market sector will record the greatest pickup in 2018, given the significant number of former Housing and Urban Development Company (HUDC) estates and government housing projects trying their hand at a collective sale.

Cushman & Wakefield research head Christine Li expects the mass market segment to witness a pickup since many buyers, who have held back purchases over the past three years, have now accumulated enough savings to acquire a new property.

She noted that the local property market’s resilience and the strength of the Singapore dollar have made Singapore more appealing to foreign property buyers again, despite the higher additional buyers’ stamp duty (ABSD) for such buyers.

 

This article was edited by Keshia Faculin.

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