En bloc sites to continue gaining traction

Developers are actively replenishing their land banks.

There is a continued optimism in bids for government land sales (GLS) and en bloc sites, DBS Group Research said.

This drive amongst developers comes from the intent to replenish their land bank and ride on a turn in the sentiment on Singapore’s property market. 

"However, we note that increasingly developers/ contractors are forming consortia or partnerships to bid for land, potentially to raise their pricing capabilities and to share risks," analyst Rachel Tan said.

To recall, a total of $1b was invested at Serangoon Gardens just recently.

Keppel Land-Wing Tai JV won the bid for the Serangoon North Avenue 1 land site for $446m over 15 other bidders.

Additionally, the Oxley consortium just closed Singapore’s seventh en bloc deal year-to-date – buying Serangoon Ville for $499m.