Enbloc Fever in Singapore, September 2017

On 23 September 2017, Sun Rosier at Bartley was sold for $271 million to joint venture between SingHaiyi Properties and Huajiang International Corporation. Its marketing agent Huttons Asia said the offer by SingHaiyi tops all other 4 offers at $1,885 per sq ft (psf) and is 15% higher than the asking price.

The condominium, built in 1985, is a five-minute walk from Bartley MRT station and near several good schools including Maris Stella High, St Gabriel’s Secondary and Paya Lebar Methodist Girls’ (Secondary). The owners stand to reap between $2.86 million and $4.77 million each.

Another enbloc potential Spring Grove condominium is aiming for a successful bid for enbloc sales after the last failed collective sale in 2014. The total quantum of the sale could reach $1 billion for this 325 unit development in Orange Road. With a premium address and proximity to the shopping belt of Orchard Road and Central Business District, this may be one of the largest enbloc deal in 2017.

While optimism grows among the owners of the condomium, one of the main obstacle is the ownership of the land. The current lease left stands at 73 years and after the expiry of the lease, the land belongs to the US government. Thus the successful developer has to pay the owners of Spring Grove Condominium and the US government.

There are several developments in Singapore which has good enbloc potential. According to EdgeProp, the developments are Balmoral Point, Crystal Tower, Dalvey Court, Derby Court, East Grove, Grange Heights, High Point, Still Mansions and Tan Tong Meng Tower. These developments are generally older and are considered small developments with smaller number of units. Most importantly, the plot ratio of the land can be enhanced.

Recent collective en bloc sales in Singapore include Tampines Court, Eunoville and Rio Casa. With many successful deals completed in 2017, we are expecting more to come where Pine Grove, Jervois Gardens and Amber Park are attempting to join the fever.