How likely will your condo be up for en bloc?

By EdgeProp Singapore / EdgeProp | March 5, 2018 4:00 PM SGT
The collective sale (en bloc) momentum continues and condo owners are moving fast to catch the wave. Sure, success isn’t guaranteed, but the prospect of becoming overnight millionaires from these en bloc deals has sent many owners scrambling to put their properties up collectively in the market. Meanwhile, others may be wondering if their home is a viable candidate for en bloc.
How do you know if your property has en bloc potential? What are some factors that can contribute to a successful collective sale attempt? To identify these factors, EdgeProp constructed our very own en bloc calculator to determine the probability that a condominium would be put up for collective sale.
The calculator was launched in 2017 and is based on the logit model, also known as logistic regression. It found that the following factors – age, number of units, and plot value enhancement impact the probability that a development would be put up for collective sale. They were statistically significant at 5% level:
Variables that could enhance a collective sale’s success, based on the logit model.
Since its launch, the calculator has accurately “predicted” the likelihood that a development would be put up for collective sale. For instance, 25 of 35 properties that were sold on collective sale between January 2017 and March 2018 were given a ranking of “>80%” or “very likely” to go en bloc.
This includes Hollandia, a 48-unit development in District 10 that was recently sold for $183.4 million – a whopping $20.23 million above its reserve price of $163.15 million, or $1,515 psf ppr.
A screenshot from EdgeProp’s en bloc calculator.
Meanwhile, projects such as Riviera Point, Mayfair Gardens, Florence Regency and Tampines Court were given a ranking of between “60% - 79%” or “likely” for their probability of going en bloc.
How en bloc properties sold between January 2017 and February 2018 were ranked by EdgeProp’s en bloc...