Gov’t eases en bloc rules to speed up ageing estate redevelopment

Around 150 private non-landed developments are aged between 40 and 59 years.

Singapore has eased consent thresholds for collective sales, a move aimed at accelerating urban rejuvenation as the private housing stock ages, Huttons said.

The change comes as land constraints and a rising number of single residents intensify pressure to build more homes.

Recent controversy over developing Gillman Barracks and Maju Forest highlighted the shrinking pool of alternative sites, whilst brownfield redevelopment remains hampered by weak private residential sales amid recent policy changes.

Huttons estimates around 150 private non-landed developments are aged between 40 and 59 years, with fewer than 10 developments aged 60 years or above.

These older projects face mounting maintenance costs for lifts, water seepage, common areas and electrical systems.

To protect minority owners, the threshold to convene a general meeting and form a collective sale committee has been raised to 35% of owners, up from 20%, whilst the window to collect signatures has been shortened to six months from 12 months.

The most significant change extends the collective sale regime to non-strata-titled developments where owners hold long leases but not the land itself — previously requiring unanimous agreement to proceed. Under the new rules, developments with leases of at least 850 years can now pursue a collective sale.

Huttons expects more fresh en bloc attempts as a result. However, success will hinge on reserve pricing and the proportion of foreign and investor ownership.

“An overly high reserve price lowers the odds of a successful sale, whilst a high concentration of foreign owners or investors reduces the likelihood of a sale being launched at all,” Huttons added.

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