The collective-sale market is nearing the peak of its cycle, one year into the boom, with real estate players paying smaller premiums and likely to go for smaller sites, RHB analyst Vijay Natarajan said in a report out on Tues. While the overall value of collective sales is expected to cross the previous year’s S$8.2 billion figure, the market is likely to peak by the second or third quarter, with the supply pipeline being steadily built up and developers’ land banks largely restocked, he predicted. Developers have become “very selective”, and tighter policy measures are also taking their toll on the appeal of collective-sale projects, he said. Such measures would lead in a move towards “small- to mid-sized sites that have good location attributes and amenities”. “The fatigue is starting to be reflected in the premium developers have paid over the reserve price, which has halved to 5 per cent this year compared (with) 10 per cent in 2017,” Mr Natarajan noted.... Continue Reading