Collective sales - reuse, renew, recycle

THE number of successful collective sales in the last six months has attracted much media attention. Most analysts focus on the high prices paid by developers or the substantial additional supply that could result as the sites are redeveloped.

We believe collective sales are a successful model for urban rejuvenation and developers' exuberance is indicative of Singapore's competitiveness and prospects. Recent increase in housing grants and policy changes are positive for sentiment. In the first quarter of 2017, two separate policy changes lifted buyer sentiment in the private residential market.

Firstly, the government adjusted the duration and rates for the application of seller's stamp duty. More importantly, the Housing Development Board increased the CPF Grant for qualifying buyers of resale HDB flats to S$40,000-50,000, from S$30,000.