This is the biggest en bloc deal in Singapore since 2018 | Real Estate Asia
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This is the biggest en bloc deal in Singapore since 2018

Chuan Park condo was sold for $890m, the largest deal since Tulip Garden was sold 4 years ago.

The real estate investment volume in Singapore dropped 70.2% q-o-q to $4.78b in Q3. Cushman and Wakefield attributed this to more cautious market sentiments amid heightened macroeconomic headwinds. 

“Despite that, total residential investment volume still rose moderately to $3.5b registered in Q3 2022 from $3.3b clocked in during the preceding quarter, driven by activities during the early month of the quarter,” the analyst said.

Here’s more from Cushman and Wakefield:

Land purchase activities in the collective sale market were relatively robust during July this year with three deals concluded during the same month. Chuan Park condo was sold for $890 million to Kingsford Group and MCC Singapore which is considered as the biggest en bloc deal since the sale of Tulip Garden. This was followed by the en bloc sale of Euro-Asia Apartments and Parkview Mansions in late-July for $218m and $260m, respectively. However, the collective sale market grew quiet with no successful major collective sale deal in August and September. 

Three government land tenders which closed in September also received lukewarm response from developers, fetching only 2-4 bids each. This compares with the 2021 - H1 2022 average of about eight bids for both private residential and executive condominium sites. This could signal a slowdown in developers’ land acquisition activities amid concerns on rising interest rates, inflationary pressure, heightened construction costs and macroeconomic headwinds. 

Additionally, on 30th September, the government implemented a new set of cooling measures to ensure prudent borrowing by home buyers. The fresh curbs could be another blow to the residential market which already faced numerous challenges. The market could take a breather in Q4 2022, as developers and home buyers assess the impact of the new cooling measures.

 

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