Windfall gains from en-bloc fever are likely to be capped

RECENT evidence suggests that the en-bloc fever in Singapore's residential property market is hotting up again.

Since last year, a total of 17 residential collective sale sites have been launched, covering more than 3,140 units, according to research by property consulting firm JLL. In value terms, the deals concluded during the first eight months of 2017 totalled about S$3.5 billion across all property sectors, the highest since 2007 - although the figure is well short of 2007's S$11.5 billion worth of deals done. But the pick-up in en-bloc sentiment is unmistakable. The aggregate transaction value for 2017 to date is already more than three times what it was in 2016. Moreover, some 50 to 60 additional en-bloc deals are said to be at various stages of completion.

So why are we witnessing this latest bout of en-bloc fever and what are its implications for the property market and for owners?