Issue 301

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 CONTENTS FROM THE

p2 En-Bloc Sales in Singapore What You

EDITOR
Welcome to the 301st edition of the
Singapore Property Weekly.
Need to Know
Hope you like it!
p8 Resale Property Transactions
Mr. Propwise
(February 20 February 24)

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 SINGAPORE PROPERTY WEEKLY Issue 301

En-Bloc Sales in Singapore What You Need to Know

By Andrew Adriaan (guest contributor)

Private property is a precious commodity in

land-scarce Singapore. Yet in some cases,
the government and property developers can
take over the land your property sits on,
compelling you to sell your house. Of course,
the reality is often less grim with many
owners of old developments suddenly
becoming overnight millionaires after an en-
bloc sale. But make no mistake about it a
successful en-bloc sale is not easy and can
take a long time. This article aims to provide
an overview of the en-bloc process in
Image Credit: Jakob Montrasio
Singapore.

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 SINGAPORE PROPERTY WEEKLY Issue 301

What is En-Bloc? development and share common facilities.

An en-bloc or collective sale occurs when the Why En-Bloc?

there is a sale of two or more property units
The obvious reason is the high potential for
to a common developer. In the event of a
profits. In land-scarce Singapore, property
successful en-bloc sale, proceeds are usually
prices are generally on the uptrend over a
divided amongst all the unit owners.
long time horizon.
Some of the more well-known and successful
One of the major factors affecting an en-bloc
en-blocs in Singapore include Leedon
sale is the plot ratio of the land, which is
Heights (today known as Leedon Residence),
decided by the government through the URA
which was sold for $835 million, and Gillman
Master Plan. The plan, revised every five
Heights (today known as the Interlace), which
years, decides how much of the land is
was sold for $548 million.
allocated to specific needs e.g. industrial,
A common en-bloc scenario is one where all commercial, and residential. This in turn will
the units in a strata-titled development are determine the type of property to be built on
being sold to a developer. Strata-titled the area as well as the maximum number of
developments generally refer to floors; factors that prospective buyers will
condominiums, private apartments or cluster consider before developing the land.
houses that are jointly developed within a

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 SINGAPORE PROPERTY WEEKLY Issue 301
Therefore, major developers would eye older
developments in prime areas and aim to buy
them before building newer apartments or
malls in its place that has the potential to earn
better capital returns. For the property owner,
the negotiation process (where developers
have to persuade you to move) will usually
result in some sort of capital gains either via
cash compensation or the ability to buy a
higher-priced property in a prime location at a
cheaper rate. Therefore, for successful en-
bloc sales, it is usually a win-win situation for
both buyers and sellers.
Additionally, there is another reason for en-
bloc. It is legislated by law under the Land
Acquisition Act where the government may
acquire land in the private sector to be used
for providing essential public goods such as
schools, hospitals or the more common
example, MRT projects. It is generally a good
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thing as instead of pandering to the wishes of
a minority which impedes progress, the
government can step in and in most cases,
the owners whose properties are being
acquired will be paid due compensation.
What Does The Law Say About En-Bloc
Sales?
In general, if a development is older than 10
years, at least 80% of its owners must agree
to sell their homes. The percentage increases
to 90% if the development is less than 10
years old.
Under the 2007 Land Titles (Strata Act)
amendments, other than the agreement by a
pre-determined majority (based on either
share value, share in land or notional share),
they must take into account the total area of
all the lots in the strata or flatted
development.
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 SINGAPORE PROPERTY WEEKLY Issue 301

For example, for developments that are older What the En-Bloc Process Involves
than 10 years old, besides getting 80% of the
Either external buyers or homeowners can
owners to agree (based on strata value), this
initiate an en-bloc. The first step is for the
80% must also form no less than 80% of the
homeowners to form a sales committee and
total strata area (excluding the area of any
appoint no more than three persons to
accessory lot) or flats.
represent the entire group.
In the 2010 amendments, stricter restrictions
The committee would have to seek
were imposed, such as the enforcement of a
professional advice from a legal consultant
2-year hiatus after a failed first attempt. This
and marketing/property consultant as well as
is to prevent harassment of homeowners who
to obtain an independent valuation report
had refused to sell their properties, as
from an independent valuer. These
witnessed from the infamous case of the
professionals will also have to advise on the
Laguna Park condo.
proposed method of distributing sales
When the majority of the owners agree to sell proceeds and decide on the sale method, e.g.
a collective number of units, the whole by auction or tender.
development can be sold, much to the
displeasure of the remaining dissenting
owners.

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 SINGAPORE PROPERTY WEEKLY Issue 301
Once the committee is formed, they will have
to persuade the majority (as defined by law)
to sell and indicate their consent by signing a
Collective Sale Agreement. This must be
obtained within a year. Failure to do so will
render the sale attempt invalid.
The 2010 amendments to the law also
imposed new general meeting requirements
and expanded the definition of what
constituents a failed attempt. For instance,
when the general meeting is unable to obtain
30% (by shared value of the development)
within the hour, it is deemed as a failed
attempt.
Once the committee has found a buyer and
the sale is agreed upon, an application may
be made to the Strata Titles Board who will
then evaluate the application before making a
decision. Do note that even at this stage,
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owners who do not agree to the sale can still
raise their objections with the Board.
At the end of the day, a successful en-bloc
sale is financially rewarding to both the
homeowners and buyer(s), resulting in a win-
win situation. The process, however, is long
drawn and can take years before successful
completion.
By Andrew Adriaan, Associate Director,
Redbrick Mortgage Advisory. Andrew spent
the last 7 years working with private bankers,
advising high net worth clients on their
mortgage matters. As a highly efficient
banker, he has won many sales awards
during his employment with one of the largest
lenders in Singapore. To get a free
consultation on your new loan or refinancing
needs, please head to
www.propwise.sg/mortgage/
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 SINGAPORE PROPERTY WEEKLY Issue 301
Non-Landed Residential Resale Property Transactions for the Week of Feb 20 Feb 24

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
2 ALTEZ 1,012 2,080,000 2,056 99 9 ONE DEVONSHIRE 1,292 2,700,000 2,090 FH
2 ICON 581 988,888 1,701 99 9 CAIRNHILL RESIDENCES 1,163 2,280,000 1,961 FH
3 ALEXIS 398 575,000 1,444 FH 9 CLAYMORE PLAZA 775 1,360,000 1,755 FH
3 RIVER PLACE 743 1,000,000 1,346 99 9 YONG AN PARK 3,229 5,600,000 1,734 FH
3 THE ANCHORAGE 1,765 2,000,000 1,133 FH 9 ASPEN HEIGHTS 1,324 1,870,000 1,412 999
5 BOTANNIA 1,216 1,391,000 1,144 956 9 PARC CENTENNIAL 1,550 2,010,000 1,297 FH
5 DOVER PARKVIEW 969 1,050,000 1,084 99 9 PACIFIC MANSION 1,528 1,618,000 1,059 FH
5 VARSITY PARK CONDOMINIUM 1,292 1,380,000 1,068 99 10 NASSIM MANSION 3,477 8,180,000 2,353 FH
5 MONTEREY PARK CONDOMINIUM 2,357 1,998,000 848 999 10 LEEDON RESIDENCE 2,669 5,950,000 2,229 FH
5 FABER CREST 1,744 1,450,000 832 99 10 GARDEN APARTMENT 2,476 3,600,000 1,454 FH
5 PARK WEST 1,894 1,310,000 691 99 10 HOLT RESIDENCES 2,067 2,580,000 1,248 FH
9 OUE TWIN PEAKS 549 1,760,100 3,206 99 10 JERVOIS JADE APARTMENTS 1,044 1,110,000 1,063 99
9 OUE TWIN PEAKS 549 1,690,900 3,080 99 11 SOLEIL @ SINARAN 936 1,760,000 1,879 99
9 OUE TWIN PEAKS 549 1,673,600 3,049 99 11 368 THOMSON 1,302 1,950,000 1,497 FH
9 OUE TWIN PEAKS 549 1,673,900 3,049 99 11 SHELFORD SUITES 1,442 1,928,000 1,337 FH
9 OUE TWIN PEAKS 1,055 3,151,000 2,987 99 11 THOMSON 800 1,625 1,840,000 1,132 FH
9 OUE TWIN PEAKS 570 1,680,200 2,945 99 11 HILLCREST ARCADIA 1,819 1,475,000 811 99
9 OUE TWIN PEAKS 1,055 3,100,000 2,939 99 12 MOONSTONE RESIDENCES 1,238 1,230,000 994 FH
9 OUE TWIN PEAKS 549 1,575,000 2,869 99 13 ONE LEICESTER 1,206 1,400,000 1,161 FH
9 OUE TWIN PEAKS 549 1,498,200 2,729 99 14 VACANZA @ EAST 484 640,000 1,321 FH
9 OUE TWIN PEAKS 549 1,463,800 2,666 99 15 WATER PLACE 1,453 1,750,000 1,204 99
9 THE PEAK @ CAIRNHILL II 829 2,160,000 2,606 FH 15 TANJONG RIA CONDOMINIUM 635 752,000 1,184 99
9 THE PEAK @ CAIRNHILL I 689 1,655,000 2,402 FH 15 PARKSHORE 1,324 1,550,000 1,171 FH

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 SINGAPORE PROPERTY WEEKLY Issue 301

Postal Area Transacted Price Postal Area Transacted Price

Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
15 HOMEY GARDENS 1,001 1,070,000 1,069 FH 23 PALM GARDENS 1,216 840,000 691 99
15 MANDARIN GARDENS 1,001 870,000 869 99 25 PARC ROSEWOOD 431 520,000 1,208 99
16 BEDOK RESIDENCES 592 825,000 1,394 99 26 BULLION PARK 1,259 1,200,000 953 FH
16 EAST VILLAGE 624 838,000 1,342 FH 27 SELETARIS 1,604 1,250,000 779 FH
16 BAYSHORE PARK 947 760,000 802 99 27 EUPHONY GARDENS 1,130 775,000 686 99
17 AZALEA PARK CONDOMINIUM 1,679 1,200,000 715 999 27 SELETARIS 1,389 912,000 657 FH
17 EDELWEISS PARK CONDOMINIUM 2,691 1,430,000 531 FH 27 YISHUN SAPPHIRE 1,819 980,000 539 99
18 WATERVIEW 1,141 1,200,000 1,052 99
18 SEA ESTA 1,119 1,070,000 956 99
18 TROPICAL SPRING 1,378 1,138,000 826 99 NOTE: This data only covers non-landed residential resale property
18 EASTPOINT GREEN 958 788,800 823 99 transactions with caveats lodged with the Singapore Land Authority.
18 THE TROPICA 1,518 1,200,000 791 99 Typically, caveats are lodged at least 2-3 weeks after a purchaser
signs an OTP, hence the lagged nature of the data.
18 RIS GRANDEUR 2,056 1,620,000 788 FH
18 CHANGI RISE CONDOMINIUM 1,259 950,000 754 99
18 MELVILLE PARK 958 700,000 731 99
18 MELVILLE PARK 1,345 868,000 645 99
19 AMARANDA GARDENS 1,464 1,850,000 1,264 FH
19 RIVER ISLES 893 780,000 873 99
19 CHUAN PARK 1,173 960,000 818 99
20 COUNTRY GRANDEUR 1,442 1,600,000 1,109 FH
21 THE CASCADIA 1,173 1,740,000 1,483 FH
21 MAPLEWOODS 1,787 2,418,000 1,353 FH
23 MERA WOODS 1,001 970,000 969 999
23 HILLVIEW RESIDENCE 1,238 1,030,000 832 999
23 GUILIN VIEW 1,259 960,000 762 99

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