En bloc is a somewhat very Singapore thing. Often when you hear so-and -so just had an enbloc, its basically a euphemism for that person having a big windfall. Best to ask him out for kopi!
So what exactly is an enbloc and how can we spot one?
En bloc refers is a collective sale of multiple property units to an Independent Property Developer. Being involved in an en bloc sale can bring substantial financial compensation to homeowners.
Essentially, private properties in Singapore with the best en bloc potential exhibits the following characteristics:
- Possesses an under-utilized land plot ratio
- Has a better success rate because of age and smaller development
- Allows for the redevelopment of the district
- Has an owner’s profile (less than 20% foreigner and entity-owned is preferred)
- Has a reasonable asking price
Considering the rise in the popularity of properties with en bloc potential in Singapore real estate, we have prepared a list of private properties you may be interested in.
#1: Braddell View (En Bloc Potential: Very Strong)
Privatized in 2017, Braddell View was put on sale in 2019 for $2.08 billion. However, it didn’t receive offers and the tender ended in May. A relaunch was planned in August at the same price, but there were no offers again.
This is a Housing and Urban Development Corporation Limited (HUDC) project. Developers are attracted to Braddell View for several reasons. The property occupies 1.1 million square feet and is located near Braddell and Caldecott MRT stations. You can find numerous coffee shops, schools, and a wet market in the vicinity.
This mature apartment development features 438 units available for rent or sale. It provides a diverse range of amenities for residents, including a wading pool, mini-mart, children’s playground, tennis courts, gymnasium, and a barbeque area.
Moreover, public transportation is accessible nearby. Multiple qualified medical centers are also within a short distance. Lastly, the property is under surveillance 24/7 to ensure residents’ safety and peace of mind.
The success of the collective sale can get owners $2.04 million to $4.03 million, while commercial shop owners may receive up to $1.2 million. The development has a lease tenure of 102 years, which came into effect in 1978.
#2: Maxwell House (En Bloc Potential: Strong)
This development has been around since 1971. It is available for collective sale with a hybrid residential and commercial project possibly taking over. The owners seem to have priced it at $295 million.
Maxwell House is nestled on a trapezoidal island site spanning 41.801 square feet, comprising mainly offices. It has a 4.3 plot ratio under the URA Master Plan 2019.
This property is located at the edge of the Central Business District. Nearby destinations include the Tanjong Pagar and Chinatown stations and conservation shophouse enclaves and Maxwell Food Centre. An underground Maxwell MRT station is expected to be completed in 2022.
Since Maxwell House is surrounded by offices and food and beverage outlets, it possesses greater value in the residents’ eyes. Another reason it is expected to be well-received is because of a lack of residential development land in the district. Developers also have the flexibility of building additional units or studios since the property is not constrained by a maximum allowable number of units.
#3: Flynn Park (En Bloc Potential: Strong)
Under the URA Master Plan 2019, Flynn Park is priced at $365 million, which is slightly higher than the original asking collective sale price of $363.8 million in 2018.
Dedicated for residential use, this property has a 1.4 gross plot ratio. It provides an excellent opportunity to invest in a big, beautiful freehold property on the city’s outskirts. The mid-sized location is ideal for developers.
The Circle Lane (a project expected to be completed in 2025) will connect Flynn Park to the Marina Bay Financial District in seven stations. Since the property is becoming older, a collective sale is to follow.
The 72-unit condominium is surrounded by prestigious educational institutions, which is a plus point for families.
#4: Pandan Valley (En Bloc Potential: Strong)
Pandan Valley is one of the most expensive en bloc sales in Singapore, with a collective sale asking price of $2.6 billion.
The 623-unit development covers 865,000 square feet, offering $4.2 million to each owner. It is a freehold site, with its location being one of its most valued attributes.
Established in the 1970s, Pandan Valley was one of the first condominiums introduced to Singapore’s real estate market. It boasts unique unit layouts with large open spaces and cascading terrace.
This property has 13 different types of units for sale. The condominium is equipped with modern facilities, including sports units, children’s educational centers, landscaped gardens, and various retail businesses.
The private property has become an attractive destination for international students and expatriates looking to stay in close proximity with local educational institutions. A popular drinking and dining spot called Holland Village is also located nearby.
#5: Ivory Heights (En Bloc Potential: Strong)
Ivory Heights is a 654-unit mega site offering the owners between $2.5 million and $2.8 million.
The development occupies 825,502 square feet and promises unobstructed views of the Japanese and Chinese Gardens and the famous Jurong Lake in the vicinity. It lies within Singapore’s second central business district zone.
The Jurong East MRT Station is 500 m from Ivory Heights. Residents can access various schools, mega malls, and food centers. As per the 2014 Master Plan, the development is treated as a residential zone.
Click the link to learn more about Master Plan and what it means to you.
Sites with en bloc potential are a hot topic in the Singapore real estate industry. Since developers tend to buy these properties at a premium, owners get to walk away with big profits given that they had invested in it at a low cost.
While en bloc sales in Singapore have slowed down ever since the government introduced cooling measures like Additional Buyer’s Stamp Duty (ABSD), there’s still hope.
If the value of land in your area has gone high and the property market seems to be in good shape, there is a chance of your site going up en bloc. But with the Supply of properties shrinking in Singapore, these are really exciting time for potential En Bloc season
Buckle up, this should be a fun year ahead…