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Bloomberg
Shareholders of Singapore developers have another reason to rejoice: en-bloc sales are at a ten-year high, according to some estimates.
A spate of en-bloc sales this week, or redevelopment deals in which a group of owners band together to sell apartment blocks at a hefty premium, has buoyed market sentiment that the property sector is poised for a rebound. Chinese developer Kingsford Huray Development announced the $607 million purchase of Normanton Park, a 488-unit apartment complex, while City Developments Ltd.’s joint venture acquired Amber Park for S$906.7 million.
Bullish investors pushed shares of UOL Group Ltd. up as much as 4.3 percent to a record high, making it the best performing stock on Singapore’s benchmark gauge. City Developments Ltd. rose as much as 2.4 percent.
According to OCBC, en-bloc sales have totaled more than S$5 billion this year, which is the highest since 2007.
“The market recognises that en-blocs themselves exert powerful trickle-down effects on demand and supply,†Eli Lee, a senior investment analyst at OCBC Investment Research said.