Enbloc Sales in Singapore – What You Need to Know (6/3/2017)

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 enbloc sale. But make no mistake about it – a successful enbloc sale is not easy and can take a long time. This article aims to provide an overview of the enbloc process in Singapore.

What is Enbloc?

An enbloc or collective sale occurs when the there is a sale of two or more property units to a common developer. In the event of a successful enbloc sale, proceeds are usually divided amongst all the unit owners.

Some of the more well-known and successful enblocs in Singapore include Leedon Heights (today known as Leedon Residence), which was sold for $835 million, and Gillman Heights (today known as the Interlace), which was sold for $548 million…

Starting an enbloc sale – Salient issues to consider (27/6/2016)

When Chinese developer Qingjian Realty signed a conditional contract to buy the 358 units Shunfu Ville for S$638 million in May this year, some believe that this could herald the dawn of a new wave of collective or enbloc sales in Singapore. This prospect comes at the back of a lowered land supply by the Government, which seems to barely satisfy the appetite of property developers who have participated actively in the recent government land tenders.

Property owners may seek an enbloc sale of their development, pursuant to section 84A of the Land Titles (Strata) Act (LTSA) where a collective sale supported by 80% of the owners (in terms of both share value and strata area) and where the development is at least 10 years old, could receive the order of sale from the Strata Titles Board or the High Court. Such property owners should, however, be mindful of the salient issues for starting an enbloc sale…

Enbloc Sales – how does it work? (29/3/2016)

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 enbloc sale. But make no mistake about it – a successful enbloc sale is not easy and can take a long time. This article aims to provide an overview of the enbloc process in Singapore.

What is Enbloc?

An enbloc or collective sale occurs when the there is a sale of two or more property units to a common developer. In the event of a successful enbloc sale, proceeds are usually divided amongst all the unit owners.

Some of the more well-known and successful enblocs in Singapore include Leedon Heights (today known as Leedon Residence), which was sold for $835 million, and Gillman Heights (today known as the Interlace), which was sold for $548 million….

The Land Titles Strata Act

Members of collective sale committee

1.—(1)  Subject to sub-paragraph (2), a collective sale committee shall comprise such number of persons as may be determined in a general meeting convened in accordance with the Second Schedule, but in no case less than 3 members or more than 14 members who are natural persons.

(2)  Notwithstanding sub-paragraph (1), where the number of subsidiary proprietors of the lots in a strata title plan is not more than 3, the collective sale committee shall consist of each subsidiary proprietor (if any) who is a natural person or the subsidiary proprietor’s nominee, together with the nominee of each subsidiary proprietor (if any) which is a company.

(3)  A person shall not be eligible for election as a member of a collective sale committee unless he is an individual of at least 21 years of age and who —

(a)
is a subsidiary proprietor of a lot;
(b)
is nominated for election by a subsidiary proprietor of a lot which is a company; or
(c)
is not a subsidiary proprietor but is a member of the immediate family of a subsidiary proprietor and is nominated for election by that subsidiary proprietor…