Singapore's new collective sale law has brought older condominiums back to the market, but buyers are scarce. At least 19 strata developments are exploring or preparing an en bloc sale, JLL estimates, and 10 collective sale tenders closed or are closing in October alone, EdgeProp Singapore reported. Most of the big ones are still waiting for a bid.
The law passed on 8 September lowers the consent needed for older estates: 70 per cent for developments aged 40 to 59 years, and 65 per cent for those 60 and older, down from 80 per cent. Committees will have six months instead of 12 to gather signatures, and a failed attempt now means a three-year wait instead of two. We explained what the new thresholds mean for owners when the law was passed.
What has actually sold
Only a handful of collective sales have closed this year: the rear block of The Centrepoint for $391.9 million, Loyang Valley for $880 million, Tan Boon Liat Building for $950 million, Kewalram House for $120.5 million and, this month, Pek Chuan Building in Lavender for $80.68 million, about 4.8 per cent above its asking price after three tenders. Several of these went to buyers who are not housing developers, such as a hostel operator and investors planning serviced apartments or dormitories.
Who is still waiting
Roov's en bloc tracker follows the residential attempts. In October, four tenders closed without a sale and moved to private treaty, where the owners can still negotiate with a buyer:
Lakeside Towers, Jurong West: third attempt at $350 million, private treaty to about 9 December High Point, Mount Elizabeth: sixth attempt at $580 million, private treaty to 21 December Gilstead Court, Newton: fourth attempt at $198 million, private treaty to about 21 December City Plaza, Paya Lebar: third attempt at $970 million, no bid; private treaty under way
Still to close are Balestier Regency at $255 million (fifth attempt, 12 November) and Beauty World Plaza at $165 million (third attempt, 19 November). Trendale Tower in Cairnhill, at $168 million on its fourth attempt, closed on 23 October; its result has not been reported. International Plaza in Tanjong Pagar has formed a new committee after failing at $2.7 billion in 2021. You can follow them all in Roov's en bloc sites tracker.
Why developers are choosy
Government land is the easier route. A Government Land Sales site can be built on as soon as it is awarded, while an en bloc site can be held up by objections at the Strata Titles Board and by owners staying up to six months after completion. As we set out in our review of a decade of GLS land prices, government land now supplies most new private housing.
The economics are tighter too. Developers pay Additional Buyer's Stamp Duty up front on residential land, and the floor-area rules changed in 2023. Our guide to how land bids become launch prices walks through the costs a developer has to cover.
What owners would get
The reserve prices look generous against what the same flats resell for. In Roov's URA records, Gilstead Court's $198 million reserve works out to about $4.1 million per unit, while its few resales since 2023 had a median of $2.7 million. Balestier Regency's $255 million is about $3.5 million per unit, against a resale median of about $2.1 million. But the premium has to pay for a replacement home at today's prices, which is why owners and developers often cannot agree. Lawyers quoted by EdgeProp put today's typical collective sale premium at 20 to 40 per cent, far below the 40 to 60 per cent of the 2017 wave.
If your estate is voting
Work out what you would actually be left with. Roov's valuation tool shows what your unit is worth today, the stamp duty calculator shows the duty on a replacement home, and the affordability calculator shows the loan you could take on it. If you bought recently, check the seller's stamp duty guide too: a sale within the holding period can cost you.
Weighing an en bloc vote, or a replacement home after one? Roov's agent can run the numbers for your unit. Get in touch.