The issue about enbloc is that, developers are finding it more challenging as compared to buying through Government Land Sales
As the current number of 2022 transactions stands, it is still pale in comparison with the vibrant enbloc activity that taken place during the 2017/18 period where land hungry developers start bidding aggressively for land.
The previous round of enbloc activities also set the stage of the current prices that we are seeing right now in the market where record breaking projects selling out eventually.
Projects like Florence Residences, Affinity at Serangoon, Kent Ridge Hill Residences, Riversound Residences, Jadescape and more, these are all previous enbloc sites that developers have bought at the previous round of enbloc cycle.
Looking at the current low supply in the resale market of district 20 where Jadescape is, there are already profitable sub sales happening. The first batch of owners who bought it despite the high launching price back are sitting on good capital gains.
With the new regulations introduced in place, the developers will need to weigh their risks carefully, and also monitor the market sentiments before buying over an enbloc project.
Land hungry developers will choose to look at sites that much smaller and that they are confident to build, compete and sell within the 5 years period.
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