Many Singaporeans would look forward to the potential of an en-bloc sale (otherwise known as a collective sale) when considering any investment in a private condominium. Sometimes greed sets in from owners when they have plans to sell their unit during times when there is some talk that the condominium is going for en-bloc, especially when it has reached the period (above 15 years onwards) or when a committee is formed to start the procedures. They would ask for the sky, especially when they “claim” that the developer has “offered” a high reserve price for their priced unit.
While all these is nice and good, nothing is cast on stone when the collective sale is not officially agreed and signed.While we saw the highest collective sales in the period of Q3 2007 for residential properties, the tide turned when the global financial melt-down came about in 2008. After the recovery in 2009, there was an attempt to re-start was we saw only among the smaller projects. in 2010, the popularity has increased but not really on bigger projects.
It is important when investing in any condominium to consider the value and cash-flow of the project, rather than just considering that it is for potential en-bloc. You would be rather disappointed if it does not happen the way you were told.
I recently came across an owner whose project is under going an en-bloc sale and was asking for extremely high selling price (over $800, 000 above bank indicative valuation). Do you think the unit can be sold? Of course not. despite numerous advise and explanation, the owner has full confidence it would be sold. Well, all the best to him. we need to always remember to sell at fair market value. Till then, stay tuned for more real estate updates on the market. Awesome!