How long will en bloc rally end?
Let’s take a peek at what was happening 10 and 20 years ago.
In the 3 years after the Asian Financial Crisis in 1997, almost 100 en bloc sales were completed. Whereas before the Global Financial Crisis hit in 2007, almost 170 en bloc sales were dealt.
Till date, there are around 70 en bloc projects being successfully transacted since 2016. This makes the en bloc sales since 2016 seems small compared to the last two waves.
In addition, Singapore population has increased from 4.6mil in 2007 to 5.6mil in 2017, there is a positive of 100,000 people in Singapore over the 10 years period. Furthermore, most of the successful en bloc projects are freehold, which is something rare in the market nowadays.
Not forgetting that, thousands of en bloc homeowners are also looking for the home replacement. As a result, there is an increase in demand for Singapore property.
In the near term, we think there is room for optimism as this round of en bloc sales looks set to boost prices in the private housing market. The government also targets to reach 6.9million population by 2030. With the latest cooling measure in place, the developers will ensure the better products at more attractive prices. In this tiny island, it is still early to panic about property oversupply.