How might a modest numerical adjustment to legal thresholds reshape the economics of Singapore’s collective sale landscape?
Under the current Land Titles (Strata) Act framework, en bloc transactions require consent from 80 per cent of owners by share value and strata area for developments at least 10 years old, and 90 per cent for projects under 10 years.
En bloc sales now need 80–90% owner consent, reflecting project age under Singapore’s Land Titles (Strata) Act
A collective sale committee can be initiated with support from 25 per cent of owners, rising to 50 per cent if a previous attempt has failed. These parameters, together with a 12‑month validity period from the first signature and age calculation based on TOP or CSC issuance dates, have created a relatively high bar for consensus-building, particularly in large or diverse estates. This comes as collective sale activity has slowed sharply from the S$10.3 billion achieved across 36 deals in 2018, with recent years marked by a significant decline and stagnation.
The Ministry of Law is presently reviewing the legislation, with reforms to be announced when ready, following stakeholder engagement involving property owners, developers, and consultants. Reform proposals will be announced once the review is finalised.
This process is catalysed in part by an online letter from the Neptune Court Owners’ Association, which highlighted on-the-ground concerns about ageing assets and the practical hurdles of reaching existing consent levels.
Market participants note that collective sales have tapered off in recent years, despite rising residential land values and a more active outlook for the 2026 en bloc cycle. This indicates that structural frictions may be constraining supply even as urban renewal needs mount.
Industry proposals have coalesced around a calibrated reduction in thresholds for older developments, particularly those exceeding 40 years of age, with PropNex and Cushman & Wakefield advocating a 70 per cent consent requirement for such ageing buildings, while retaining the 90 per cent bar for projects under 10 years.
These suggestions are framed as tools to address mounting maintenance costs, physical defects, and outdated, energy‑inefficient facilities, thereby supporting urban rejuvenation and land use optimisation in land‑scarce Singapore.
Any threshold change would, however, interact with persistent headwinds, including elevated land costs, additional buyer’s stamp duty, and construction inflation, as well as higher price expectations from owners. Much like homeowners evaluating whether to pursue loan refinancing to access better terms or equity, property owners in collective sale scenarios must weigh immediate costs against longer-term financial positioning.
Developers remain constrained by planning processes since outline planning permission is generally sought only after the 80 per cent mark is reached, and reserve list applications are typically limited until statutory requirements are satisfied.
