En bloc sale framework recalibrated as urban renewal ‘not merely desirable, but imperative’: Edwin Tong

The Singapore government announced changes to the collective sale regime on September 8, aimed at encouraging the renovation of aging estates and making renewal more accessible. The amendments lower the consent thresholds for en bloc sales of older developments to 65% for those over 60 years old and 70% for those aged 40 to 59 years.

Developments under 10 years old maintain a higher threshold of 90%, while those aged 10 to 39 years require 80%. Existing collective sale agreements for developments aged 40 years or older can be terminated to join the new framework, with a seven-month window for signature collection. Safeguards are in place to prevent non-consenting owners from feeling pressured, including a shortened signature collection period from 12 months to six months.

MP Alex Yeo questioned whether a six-month window would be sufficient for larger or more complex developments, to which Minister Edwin Tong responded that different timelines were not necessary as the majority of signatures are typically gathered within the first four months. The government also proposes to increase the limit for sale proceeds awarded to objectors to 0.5% of the sale proceeds for each unit, or S$2,000, whichever is higher.

This provision, previously introduced to protect objectors, applies in cases where owners had invested significantly in renovation works just before the collective sale. Tong emphasized that the changes aim to update the consent thresholds while acknowledging that conditions have changed since the regime's introduction in 1999.