According to data from real estate consultancy JLL, demand for collective sale sites in Singapore has nearly dried up, with only one deal done since the beginning of last year – a far cry from the 16 transactions closed in 2013. The only sale that went en bloc since 2014 was Thong Sia Building in the Orchard shopping belt this year.
In the last two years, about 10 attempts to sell en bloc were scuppered, including Spring Grove condominium in Grange Road with an asking price of $1.39 billion. And in July this year, the $743.9 million collective sale tender for Amber Park in Katong closed with no bids.
Developers are likely to baulk at the $840 million collective sale of the 488-unit Normanton Park, near Kent Ridge Park, which will be launched on Thursday next week.
A range of factors – weak home-buying sentiment, property cooling measures, ample supply of government land sites and the complexity of selling en bloc – have suppressed developers’ appetite for such deals, analysts said.