List of current en bloc developments and their likelihood of success

March 29, 2023

The en bloc sale of condominiums is viewed by many owners as a windfall, and some property investors intentionally seek out properties with en bloc potential. In this article, we will examine the factors that affect the en bloc market. We will also explore the likelihood of a successful sale for condominiums that have been put up for collective sale and residential developments that may be launched for a collective sale.

Headwinds for the residential en bloc market

Patience is required for investors hoping for a windfall from a collective sale because the whole process can take up to two years, and there is no guarantee of success. Moreover, current market sentiment is dampened by a weaker economic outlook and changes to government regulations.

If private residential owners sell their private property, they have to wait 15 months before they can buy a non-subsidized resale HDB flat. Only owners who are 55 years old and above and are purchasing a four-room or smaller HDB flat are exempted from this regulation.

As a result of the regulation that was implemented as part of cooling measures in September last year, owner-occupiers below 55 years old will be forced to buy another condominium unit as a replacement home if they require immediate housing. The high replacement cost for a comparable condominium unit, coupled with rising mortgage rates, could deter some young owner-occupiers from putting their condominium unit up for en bloc sale.

The owner-occupiers who choose to purchase a resale HDB flat will have to rent an interim house to wait out the 15-month period. Limited supply and strong demand have driven up housing rents in recent years. The average housing rent for condominiums in Singapore surged from $4.04 psf per month in 2021 to the current $4.83 psf per month. The high rents will add to the reluctance of some owner-occupiers to agree to an en bloc sale. Investors may also be unwilling to forgo their strong rental income stream.



The remittable portion of the Additional Buyer's Stamp Duty (ABSD) for developers was increased from 25% to 35% in December 2021. The ABSD will be remitted to developers only if they can complete and sell all units in their development within five years. As such, development risk has increased, causing developers to become more stringent in their site selection.

Successful deals this year

The en bloc tender for Bagnall Court, located along Upper East Coast Road, closed last year. In January, the 43-unit development was sold via private treaty to a consortium led by Roxy-Pacific Holdings for $115.28 million ($1,106 psf per plot ratio). A new five-storey condominium with 113 units is planned for the freehold site.



The 60-unit Meyer Park, located along Meyer Road, was sold to UOL and Singland for $392.18 million ($1,668 psf per plot ratio) in February. The freehold site will be redeveloped into a luxury condominium with 230 to 250 units.



The 19-unit freehold Holland Tower, located along Holland Heights, was sold to a wholly-owned subsidiary of Wing Tai Holdings for $76.3 million ($1,746 psf per plot ratio) in March.



More at: https://www.edgeprop.sg/property-new...lihood-success