What are the current market trends affecting en bloc sales in Singapore

Current market trends affecting en bloc sales in Singapore include moderating private residential property prices, resilient sales volumes driven by lower interest rates, and a tight unsold inventory that supports redevelopment potential despite increased housing supply.

Price growth for non-landed properties, mainly condominiums, slowed to 4.74% year-on-year in Q1 2025, with quarter-on-quarter gains at 0.95%, creating a more cautious environment for en bloc tenders as owners weigh redevelopment values against softening momentum. Regional variations are notable, with the Rest of Central Region leading at 1.70% quarter-on-quarter growth, followed by Core Central Region at 0.78%, while Outside Central Region saw flat 0.31% growth, influencing site attractiveness in prime areas.

Sales activity remains strong, with private residential units sold up 71.7% year-on-year in Q1 despite a slight quarterly dip, fueled by a benign interest rate environment shifting buyers from waiting to purchasing. Unsold private inventory dropped to 18,270 units by end-Q1, below the 10-year average, bolstering price floors and en bloc viability for older sites.

Government measures, including over 50,000 BTO flats from 2025-2027 and 8,500 private units in H1 2025, aim to ease supply tightness, potentially moderating resale and en bloc prices by meeting owner-occupier demand. Forecasts predict 3-4% private residential price growth for 2025 overall, with strong new launches (nine of top 15 selling over 90%) signaling rebound that could spur collective sales in strategic locations near MRT or schools.

En bloc activity persists at a measured pace, with EdgeProp tracking historical successes like Chuan Park (S$890 million in 2022) and recent 2025 tenders at sites such as Elias Green, where factors like location and market timing play key roles. Owners face challenges from policy pressures like high ABSD on foreigners, low foreign transactions at the high end, and baby boomer wealth supporting upgrades but not always en bloc consensus.