Recently, we have seen a surge on collective sales, and a lot of people suspect that these may bring in a higher price as a whole. But will this happen or not? As you can imagine, something like this is very hard to say, however it seems that the larger demand will not have a huge impact on home prices.
Analysts are stating that more and more customers are focusing on private home sales, and it goes to show that the demand is many times higher than a few years ago. There are 2 reasons why these sales tend to be so popular right now, one of them being the fact that developers are trying to get more money to acquire new pieces of land to work on. There are around 17200 unsold units now too, when compared to 40000 last year, so there is indeed a huge difference as a whole.
Of course, then we also have the success of previous collective sales that’s becoming more and more prevalent. People see that the collective sales are successful and they want to be a part of them. From here to generating a lot more value and quality it’s one single step and that can be very challenging.
The government is also set to take a lot of factors in consideration before focusing on ramping up the land sales. Income growth, population and the supply of new units can definitely be a factor into all of this. One thing is certain, there are around 9300 new units that can be generated from the redeveloped collective sales performed last year.
The GLS program is updated very often, at least 2 times per year, so there are some great possibilities here. But you have to keep in mind the fact that such collective sale do come with their own prevalence and demands. In the end, it’s all about making sure that all trends are monitored and everything is accounted for.
The government is certainly going to monitor all trends with even more care and this means they will take the necessary actions to have a stable and more demanding market. It will surely have its own set of challenges, but the results can definitely be extremely helpful at the end of the day. Of course, collective sales can vary when it comes to land location and pricing. But their price won’t really have any major impact on the market, that’s for sure!
Refer to link below to find out more
http://www.straitstimes.com/singapore/collective-sales-might-not-lead-to-higher-home-prices
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