Property prices to rise 7% in 2018

By Brought to you by Mitsubishi Electric / EdgeProp | March 27, 2018 7:45 AM SGT
Although market watchers have raised concerns that the collective sale momentum is slowing, Tan Hong Boon, regional director at JLL and a collective sale veteran, is confident that the current collective sale cycle will continue through 2018. “If you look at historical trends, there are usually six to eight quarters of active land buying in each collective sale cycle,” he says. Tan was one of the speakers at the EdgeProp 360 seminar held at Capital Tower on March 15. “We are about five quarters into this cycle, which means there are three quarters to go,” he adds (see chart).
The seminar was attended by 250 participants and ended with a panel discussion with the three speakers — Alice Tan, head of consultancy and research at Knight Frank Singapore, Feily Sofian, head of research at EdgeProp Singapore, and JLL’s Tan. The discussion was chaired by Boaz Boon, former head of research at CapitaLand, founder and principal of real estate and design thinking training company Thred and director at real estate advisory firm VestAsia.
From left: Boon, who chaired the panel discussion; Sofian, Knight Frank’s Tan and JLL’s Tan (Credit: Albert Chua/The Edge Singapore)
More sites sold by private treaty
As at March 19, there were 21 collective sale sites this year whose tenders closed. Of the 21, nine were sold at the close of tender, while one — Brookvale Park — was sold by private treaty after the close of tender. More than half of the sites (52%, or 11 sites) were unsold at the close of tender. However, they could be under negotiation for private treaty sale. In comparison, 32 out of 34 sites were sold at the close of tender in 2017.
Owing to the sheer volume of collective sale sites entering the market, JLL’s Tan expects more to be sold by private treaty after the close of tender. He attributes the shift from collective sale by tender to private treaty to the close of tenders for three residential Government Land Sales (GLS) sites on Handy Road, Chong Kuo Road and West Coast Vale on Jan 30. The hotly contested Handy Road site received 10 bids, while the Chong Kuo Road and West Coast Vale land parcels saw...