Collective sales market to remain healthy: Credo

Collective sales market to remain healthy: Credo
By Mustafa Shafawi | Posted: 27 June 2011 2010 hrs
     
SINGAPORE : Some S$1.7 billion in collective sales have been transacted so far this year.

According to property consultant Credo Real Estate, the figure is almost the same as the collective sales transacted last year.

It noted that successful deals over the past 18 months have been relatively small.

And the buyers are mainly small to medium-sized developers who are unable to bid for the larger government residential sites.

One of the latest transactions is a 40-unit walk-up apartment development on River Valley Road, which fetched S$70.5 million in a successful enbloc sale to Alliance Land.

Credo's managing director, Karamjit Singh, said each of the top five deals ranged from S$137 million to S$214 million.

In 2007, the top five deals were worth over half a billion dollars each, and some S$11.4 billion in collective sales were transacted then.

Mr Singh said: "The outlook for the collective sales market for the rest of 2011 is positive.

"Owners are becoming more realistic on reserve prices and there is sustained interest from developers."

Meanwhile, properties up for en bloc at the moment include an industrial building at Alexandra Terrace, with an indicative guide price of S$21.8 million.

Residential sites up for sale include St Patrick's Garden and Royalville.

- CNA/al

- wong chee tat :)