Recovery in Singapore Home Prices Gains Momentum
Property prices started recovering in the second half of last year after a near four-year decline caused by a tepid economy and the government's cooling measures aimed at damping speculation. The growing demand for apartments has led to a scramble for land amongst developers, resulting in ever-higher bids at government land auctions as well as at collective or "en-bloc" sales. Such sales take place when apartment owners jointly sell an existing residential building to a developer, getting a much higher price than if they had sold their units individually. The buyer subsequently redevelops the site, taking advantage of increased height limits and plot ratios to build more apartments. Collective sales help to boost demand for property because the sellers would have to find new homes soon after the deal is concluded, while the redeveloped complex will only hit the market three or four years later, after the project is complete. Just Thursday, a site at Cuscaden Road, ...