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Buying An Enbloc Property

Making a windfall from enbloc?

Do you know. Enbloc has make many home owners in Singapore millionaire overnight! If you are still feeling puzzle how much you can make. Let me give you a typical scenario.

The condo you bought could be valued at $1 million. The enbloc premium could value your property at $1.5 million. This is a 50% increase in value. You make $500k extra overnight!

So it is worthwhile to buy an enbloc property in this case? Is there such opportunities going forward?

Pasir Panjang Court
Pasir Panjang Court

Firstly, let me briefing summaries what is enbloc…

What Is Enbloc

Enbloc definition: In a lump or block; as a body or whole; all together.

In property definition: All owners come together and sell their property collectively to achieve a better prices thru land intensification rather than selling each individual strata units.

Enbloc Definition
Enbloc Definition

Understanding the fundamental behind that “potential”

That potential lies in the “land

Developers want to buy the land and not the strata units.

Because the land allow developers to build more and/or newer units at higher selling prices.

Enbloc Explain
Enbloc Explain

Tell tale signs of enbloc potential

More than 25 years old

Condition is usually not well maintain.

The neighbourhood is surrounding by newer condo.

Price disparity between nearby condos.

Popular and high in demand area.

Goodluck Garden
Goodluck Garden

Rewards of Enbloc

$$$$….Windfall

Typically, successful enbloc owners will received 30% – 50% higher in prices compare to selling them individually.

Risks of Enbloc

What if enbloc doesn’t go through?

Paying a significant enbloc premium before the sales actually took place.

Long drawn affair…strata title court, high court…it take 12-18 months or longer before you see your money.

Opportunity cost – Once you sign the Collective Sales Agreement. You are bind to the contract.

Factoring in Seller Stamp Duty and Buyer Stamp Duty 

Stuck with an “unenblocable property

Jervois Lodge
Jervois Lodge

Condition For Enbloc

Smaller sites is usually easier than large sites.

Investment units prefer to owner stay

Existing build up is not fully utilized – under build.

Must have realistic reserve prices

Owners owing sentimental value of their homes

Unclean land title

Aging 99 years leasehold development

Kensingston Park
Kensingston Park

How to buy enbloc properties?

Buying it yourself

You will need to read up significantly and understand how enbloc work.

From reading up Master Plan, potential GFA, development baseline, development charges, differential premium top up, GDV, etc….

If you happen to buy a lemon, you may have to live with that lemon for the next 3 years. Because SSD apply.

Gallop Gables
Gallop Gables

If you are planning to buy your first enbloc property. Are you planning to Do-It-Yourself and navigate the complexity of the buying process? Or do you prefer to engage a professional that will guide you step by step and ensure a smooth transaction.

Here, let me help you in the following:

1.Work on your housing budget and shortlist suitable enbloc property that fit your criteria.

2.Run through a details financial analysis (GDV, DP, DC to RLV) to assess that property enbloc potential.

3.Share with you the potential upside, pitfalls, under-valued buy and market sensitive information to your advantage.

Buying an ENBLOC property can only be so easy by having a property adviser that did enbloc a decade ago to work for you!

I hope this enbloc guide is helpful to you!

If you have any questions about buying an enbloc property or selling your current property to seize this opportunity.

I will be happy to help answer you.

Disclaimer

Buying any enbloc potential property come with a certain degree of risks. Risks include losing part of your capital or any financial loses. Buyers must be aware there are no guarantee to any investment. Buying any enbloc potential property is akin to buy any property except that this property may have a future potential of making that windfall. Buyers must be patience and have holding power to go through any uncertainty.

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