http://www.straitstimes.com/Think/St...ry_563460.html

Aug 8, 2010

YOUR LETTERS

En bloc rush? Some think not


The two articles, 'Selling en bloc? Big gains unlikely' by Ms Joyce Teo and 'Signs of another en bloc rush' by Mr Karamjit Singh and Ms Pamela Kow (July18), present contrasting views on collective sales.

The sub-prime crisis in the United States is a grim reminder of what can happen even to property prices when the momentum of the market is arrested.

The current abysmally low interest rates could tempt even normally prudent financial institutions to extend support to mega building projects, whose promoters mostly have to rely on outside funding.

Those of us who are older have seen enough 'it can't happen here' scenarios to be less sanguine.

Credo Real Estate's optimism is apparently not shared by others more personally involved.

Where I live, after six months, the elected collective sales committee issued the statement that estate agents who were approached agreed that 'the estate has potential but sentiment for en bloc sale is relatively weak'.

Narayana Narayana