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Singapore proposes lower en bloc sale thresholds for older condos
🇸🇬 Singapore /Economy & Trade

Singapore proposes lower en bloc sale thresholds for older condos

From CNA · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Singapore's Ministry of Law proposed lowering en bloc sale thresholds for older condominiums to encourage redevelopment.
  • The consent threshold would decrease to 70% for developments aged 40-59 and 65% for those 60 and older.
  • The bill also extends collective sale rules to non-strata titled developments and tightens rules for forming collective sale committees.

Singapore's Ministry of Law has proposed a new bill to lower the consent thresholds for older condominiums to pursue en bloc sales. The changes aim to support the renewal of aging estates, offering owners a more practical redevelopment option when there is broad support.

Under the Land Titles (Strata) (Amendment) Bill, developments aged 40 to 59 years would require 70% consent, down from 80%. For those 60 years and older, the threshold drops to 65%. Existing requirements remain for newer developments. The ministry noted that many estates have aged significantly since the collective sale regime began in 1999, often necessitating substantial maintenance and upgrading.

At the same time, there will continue to be safeguards in place for owners who do not support a sale.

— Ministry of LawThe ministry stated its commitment to protecting owners who do not wish to sell their properties during the en bloc process.

Safeguards for owners who oppose a sale will be strengthened, according to the ministry. The proposed amendments incorporate feedback from extensive consultations with various stakeholders, including property owners, academics, lawyers, consultants, industry associations, developers, and strata titles boards.

Lowering the thresholds would give owners of older developments a more practical option to consider redevelopment where there is broad support.

— Ministry of LawThe ministry explained the rationale behind the proposed changes to collective sale thresholds.

The bill also seeks to extend the collective sale regime to non-strata-titled private residential developments. Currently, these require unanimous agreement between flat owners and landowners. The proposed framework would allow for majority-consent sales, provided flat owners have leases of at least 850 years, with protections for landowners' interests.

Additionally, the legislation tightens rules for en bloc attempts. The threshold to convene a general meeting for a collective sale committee would rise to 35% of owners, and committees would have six months, instead of 12, to secure signatures for a collective sale agreement.

Such estates often require substantial investment for maintenance, repairs and upgrading works to remain safe and liveable.

— Ministry of LawThe ministry highlighted the challenges faced by aging developments.
DistantNews Editorial

Originally published by CNA in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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