En bloc fever has hit Singapore’s property market – and more are jumping on the bandwagon

Jalan Besar Plaza currently comprises of 44 residential units and 111 commercial units
Straits Times

Three more developments – two mixed-use sites and a privatised HUDC estate- have joined the en bloc fever that hit the Singapore property market this year.

The mixed-use sites, Jalan Besar Plaza and Tai Wah Building off Orchard Road, both occupy freehold land, and are asking for S$390 million (S$2,170 psf ppr) and S$81 million (S$2,035 psf ppr) respectively, reported the Business Times.

And no development charge is payable for both.

In terms of space, Jalan Besar Plaza in Kallang can be built up to a maximum gross floor area (GFA) of 179,697 sq ft, while Tai Wah Building can be redeveloped up to its existing GFA of 39,809 sq ft.

This isn’t Jalan Besar Plaza’s first bid for a collective sale.

They say the third time’s a charm and the owners of the plaza are keeping their fingers crossed. This is after two public tenders in 2015 and 2016 returned no takers.

Mr Terence Lian, Hutton Asia’s head of investment sales, remains optimistic.

In a quote carried by BT, he said: “With so many residential en bloc sites concluded recently, Jalan Besar Plaza will provide an attractive option to developers in view of its mixed-use attributes.”

Ivory Heights, a privatised HUDC estate in Jurong East, is also looking to jump onto the en bloc bandwagon.

BT reported that 80% of its owners voted in support of the sale proceeds apportionment method and collective sale agreement at the estate’s second extraordinary general meeting last week.

Ivory Heights has a reserve price of approximately S$1.34 billion (S$979 psf ppr), which includes a differential premium of S$160 million to top up the lease to 99 years.

These calculations are based on the existing build-up area and plot ratio of 1.86.

As discussions for going through with the en bloc progress for the estate, it will also require an 80% vote in favor of the collective sale from its residents.

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