S’pore en bloc residential market weakens

Some property developers are turning to commercial and mixed development projects to make up for the weak en bloc market.

This comes as transacted deals for the first quarter of 2013 dropped by 20 per cent to S$360 million, compared to the same quarter in 2012.

Real estate services firm Jones Lang LaSalle says some 50 en bloc deals amounting to S$3.2 billion were transacted in 2011, and 26 deals at S$2 billion in 2012.

As of 2013, four deals have been transacted. They comprise of three residential and one commercial property site.

Jones Lang LaSalle’s regional director of investments Tan Hong Boon attributes the weaker market to the measures introduced by the government towards residential properties. This includes the Additional Stamp Buyers Duty on residential properties.

Mr Tan said that he expects the amount of en bloc deals for this year to reach between S$1.5 and S$2.1 billion, with a majority of deals transacted from residential property sites.

Source : Channel NewsAsia – 3 Apr 2013

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