Lower en bloc thresholds address costs of maintaining old properties, facilitate renewal: Edwin Tong
The threshold will be lowered to 70 per cent for projects between 40 years and 59 years old.
Singapore's Land Titles (Strata) Act amendments, passed in Parliament on September 8, aim to simplify collective sales for older private developments, according to Law Minister Edwin Tong. The voting threshold for older buildings is being decreased from 80% to 70% for those aged between 40 and 59 years, and 65% for those 60 years and older.
Tong highlighted the need to consider whether it is feasible or sustainable to continue investing in maintenance and renovation for aging properties, or if they could be renewed and repurposed more effectively. As buildings age, the cost and complexity of keeping them in good condition escalates, and the return on investment diminishes.
This challenge is particularly relevant for the approximately 20,000 units in over 250 developments within Singapore. Tong announced three safeguards for non-consenting owners: the need for 35% of owners to convene an Extraordinary General Meeting, a reduced six-month window for a Collective Sale Committee to obtain signatures, and an extended three-year restriction period after a failed collective sale attempt.
These measures are designed to provide owners with certainty and prevent rushed decisions that could negatively impact resident quality of life and neighborhood harmony.
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