{"id":84982,"date":"2018-04-11T11:52:02","date_gmt":"2018-04-11T04:52:02","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-en-bloc-appetite-diminishing-rhb\/"},"modified":"2018-04-11T12:03:07","modified_gmt":"2018-04-11T05:03:07","slug":"developers-en-bloc-appetite-diminishing-rhb","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-en-bloc-appetite-diminishing-rhb\/","title":{"rendered":"Developers\u2019 en bloc appetite diminishing: RHB"},"content":{"rendered":"


\nDevelopers are paying smaller premiums and becoming more selective when it comes to purchasing en bloc sites, said RHB\u2019s analyst.
\nRHB revealed on Tuesday (10 Apr) that property developers are now paying smaller premiums for Singapore en bloc sites, indicating that their appetite for such land is diminishing, reported the Straits Times.
\n\u201cThe fatigue is starting to be reflected in the premium developers have paid over the reserve price, which has halved to five percent this year compared (with) 10 percent in 2017,\u201d said RHB analyst Vijay Natarajan, who expects the en bloc market to peak by Q2 or Q3 2018 as home builders satisfy their demand for land.
\nMore: Casa Meyfort And Landmark Tower Up For Collective Sale
\nIn addition, he noted that property players have become \u201cvery selective\u201d when it comes to purchasing such sites. More stringent government policies have also hit the sector, such as the higher development charges for non-landed housing, the need for traffic impact study for redevelopment sites, and the central bank\u2019s move to look closer into bank financing for projects.
\nAs such, developers are expected to shift their attention towards \u201csmall- to mid-sized sites that have good location attributes and amenities\u201d.\u00a0 These companies are also keeping a close watch on alternative land sources like the H2 2018 Government Land Sales programme, which will be announced in June.
\nNevertheless, collective sales volume for 2018 is anticipated to exceed last year\u2019s total tally of $8.2 billion. So far, 20 en bloc sites have been taken up in 2018, with over 100 plots still available versus the 28 sites purchased for the whole of 2017.
\nHowever, Natarajan warned home buyers and property investors to remain prudent, even though private residential prices are anticipated to increase between 5.0 and 10 percent this year on an annual basis, supported by successful en bloc sellers looking for replacement homes, as well as Singapore\u2019s lower unemployment rate and stronger economic growth.
\n\u201cWe remain cautious on the longer-term outlook and sustainability of steep price increases\u201d due to potential interest rate hikes and slow population growth, as well as a sluggish rental and resale property market, he added.
\nFor the latest property news, trends, resources and expert opinions, visit our\u00a0Property News\u00a0page. Home buyers looking for\u00a0Singapore Properties\u00a0may like to visit our\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Developers\u2019 en bloc appetite diminishing: RHB<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Developers are paying smaller premiums and becoming more selective when it comes to purchasing en...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-84982","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-m6G","jetpack-related-posts":[{"id":99044,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/faber-garden-up-for-en-bloc-sale-again\/","url_meta":{"origin":84982,"position":0},"title":"Faber Garden up for en bloc sale again","date":"October 3, 2018","format":false,"excerpt":"\r Faber Garden in Upper Thomson has a reserve price of $1.18 billion. (Photo: CBRE) The owners of Faber Garden have relaunched the 236-unit development for en bloc sale, after its first attempt closed without a sale in May. They have kept the reserve price unchanged at $1.18 billion. More:\u00a0Developers\u2019\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":95641,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/collective-sales-success-rate-down-despite-increased-activity\/","url_meta":{"origin":84982,"position":1},"title":"Collective sales success rate down despite increased activity","date":"August 8, 2018","format":false,"excerpt":"\r Property developers in Singapore have become more selective with their acquisitions. Despite the increased activity in the collective sales market, the success rate for en bloc sales has fallen significantly compared to 2016 and 2017 levels, reported Singapore Business Review citing Savills Asia. This comes as developers have become\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":76684,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/overly-optimistic-bids-may-derail-property-market-rebound\/","url_meta":{"origin":84982,"position":2},"title":"Overly optimistic bids may derail property market rebound","date":"January 15, 2018","format":false,"excerpt":"\r While the property market is expected to head for a rebound, analysts believe the optimism surrounding Singapore\u2019s property market may lead to market instability, reported Singapore Business Review. This comes as the intense competition for en bloc sites had pushed land prices higher. RHB Research revealed that land bids\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":102172,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/park-view-mansions-to-go-en-bloc-at-a-lower-price\/","url_meta":{"origin":84982,"position":3},"title":"Park View Mansions to go en bloc at a lower price","date":"December 11, 2018","format":false,"excerpt":"\r The 160-unit residential development is located right next to the scenic Jurong Lake Gardens. (Photo: Huttons Asia) Park View Mansions is set to relaunch its en bloc sale tender on Wednesday (12 Dec) at a reserve price of $250 million, down 22 percent from the $320 million price in\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":88551,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/8-more-properties-launched-for-en-bloc-sale\/","url_meta":{"origin":84982,"position":4},"title":"8 more properties launched for en bloc sale","date":"May 17, 2018","format":false,"excerpt":"\r Cairnhill Astoria (the red building) in prime District 9 has joined a growing list of properties launched for en bloc sale. (Photo: Colliers International) Singapore\u2019s red-hot collective sales market continues to sizzle with more homeowners jumping on the en bloc bandwagon. Cairnhill Astoria in Cairnhill Rise and Trendale Tower\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":94931,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/tee-land-cancels-en-bloc-purchase-of-freehold-condo\/","url_meta":{"origin":84982,"position":5},"title":"Tee Land cancels en bloc purchase of freehold condo","date":"July 27, 2018","format":false,"excerpt":"\r TEE Land had intended to redevelop the site into a new residential project. Tee Land has decided not to exercise its option to purchase Teck Guan Ville condo, which would have set the company back $60 million. In an SGX filing, the company explained that it had arrived at\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/84982"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=84982"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/84982\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=84982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=84982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=84982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}