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When people in Singapore talk about en bloc condos, the conversation always gets around to how much money can be made from the sale. Very often, people selling an en bloc condo are compared to lottery winners as the profits can be enormous.

So, whenever the topic of possible en bloc sites comes up among Singaporeans, it’s always of great interest. People are constantly wondering which properties are likely to be next.

Table of Contents

What Does En Bloc Mean?

How Do En Bloc Sales Work?

What Allows En Bloc Properties in Singapore to Command Such High Prices?

20 Largest En Bloc Sales

Singapore’s Property Cooling Measures Have Had an Impact on En Bloc Sales

Does Your Condo Have En Bloc Potential?

12 Condos with the Most En Bloc Potential

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What Does En Bloc Mean?

The term “en bloc” means “a block or lump,” “all together,” or “as a whole.” In Singapore, en bloc refers to the sale of property where the vast majority of residents have agreed to sell their homes at the same time to the same buyer.

This is typically an older development that would benefit from redevelopment. So, the buyer is most often a property developer who wants to buy up all the homes in a private development in a collective sale, which is what this article is all about.

How Do En Bloc Sales Work?

The obvious difference from en bloc sales and standard property transactions is the scale. A standard property transaction usually involves just one property being sold to one person at market value. An en bloc sales transaction in Singapore involves an entire private development being sold at once. This occurs when 80% to 90% of the homeowners are willing to agree to the sale, and typically for prices way beyond their value in the resale market.

Who is making the purchase of en bloc property?	Either the government or a property developer
Duration of sales process	Lengthy, as it can take as long as two years.
What is bought in an en bloc sale?	Every condo in the development as well as the land.
How much can owners sell their unit for?	An en bloc committee usually establishes a reserve price, which is set at a premium over the current market value. The buyer (i.e., government or property developer) tries matching that reserve price or negotiating with the en bloc committee. If it’s a hot market, it would not be surprising for the en bloc to sell for a higher price than the set reserve price.
When can an en bloc sale be confirmed?	When the en bloc committee gets a consensus from the required number of owners to sell. For condos < 10 years from date of TOP, you must have ≥ 90% of all owners agreeing to sell. For condos ≥ 10 years from date of TOP, you must have ≥ 80% of all owners agreeing to sell.

The sales process usually stretches out. It can be as long as two years before the sale is finalised. Therefore, homeowners (subsidiary proprietors) will have to wait quite a long time before they can expect to receive the proceeds.

Developers often pay premium prices for these properties, so if you purchased your condo quite a while ago when prices were much lower, you will likely make a sizable profit on the sale.

What Allows En Bloc Properties in Singapore to Command Such High Prices?

An en bloc sale occurs when a developer decides to purchase all the land where your property is located. They do this because they think they can redevelop the land and make a profit when they finally sell it.

For example, if you live in an old private development made up of low-rise blocks spaced far apart, a developer can buy up all that land, tear down all the blocks and replace them with 30-storey buildings. By selling each unit in those tall buildings they can make more money than it costs them to buy the land.

A collective sale means that most of the residents must agree to the sale. So, the developers must persuade them that it would be well worth their while to sell their home and relocate. They try by offering owners more than their home is worth on the open market, hoping they’ll accept.

En bloc sales have made many sellers overnight millionaires. For example, the freehold Tulip Garden sale of 162 units for $906.9 million in April 2018 netted those owners somewhere between $4.3 million and $7.6 million each.

20 Largest En Bloc Sales

Source: URA, squarefoot.com.sg

Singapore’s Property Cooling Measures Have Had an Impact on En Bloc Sales

En bloc sales in Singapore were at fever pitch in 2017 and early 2018 before the government’s property cooling measures took effect in July 2018. Now that the property market is starting to boom again in Singapore despite the pandemic, so en bloc sales could start sweeping the country again.

Once the government implemented the Additional Buyer’s Stamp Duty (ABSD) and other measures to cool down the property market in 2018 and later in 2021, en bloc sales have slowed down. Developers must now pay an ABSD of 40%, which can come to a huge amount of money on en bloc transactions that sometimes exceed $1 billion.

Does Your Condo Have En Bloc Potential?

If you’re trying to figure out the chances of your condo being sold in an en bloc transaction, you may want to know the commonalities among developments that have been sold in en bloc transactions:

1. Older Properties Have Better Chances

Although a lot of buyers find newer developments more attractive, the reality is that older properties have a good chance of being quite profitable. Most condos being considered for en bloc sales are older developments that need more repairs and thus cost residents more to maintain.

Furthermore, many aging developments, especially those built before 1990, are unlikely to have been designed according to today’s Master Plan plot ratio. This means their redevelopment potential is far greater, with the value of the land being much higher than the total combined value of all existing units.

In addition, units in older buildings generally have a lower current market value. So, these owners are likely to be more easily persuaded to sell their homes for the en bloc premiums they’re offered.

Non-landed properties as they age usually lag way behind in terms of price when compared to new launches. In time, the disparity will be so large that most owners will agree to a collective sale.

That time period will depend on how fast prices for new projects increase. If the market is really booming, the wave of collective sales would start moving towards developments that were launched just 25 years ago. In a normal property market, vintage buildings 30 to 35 years old would certainly be prime targets for a collective sale.

Developers look for older properties to buy and redevelop for two primary reasons:

• Less value per sq. metre of land, so they can buy it cheaper, and
• Residents of older properties are easier to persuade to sell. Developers need at least 80% of owners to agree for properties 10 years old and older, vs. 90% to agree on properties under 10 years old, so it’s easier to get 80% to agree than 90%.

If you own a unit in an older development, you are in luck because your chances of an en bloc sale are much greater.

2. Lower Plot Ratio than Other Nearby Developments

The plot ratio of a development shows how densely the land is being used. A lower plot ratio of a condo project means that there are fewer units in the development. Developers can see that they could make better use of the plot by building more units, generating higher profits.

However, this would only be the case if the plot ratio of a given development is lower than that of other nearby developments since some zones have lower plot ratios just because they are located near an air base or airport.

3. Comparatively Small Development

If you own in a comparatively small development, the odds of your condo being sold in an en bloc transaction may be greater. The reason is that there is a better chance of all owners agreeing to a collective sale. Another reason for smaller developments being more appealing to developers is that the overall cost of buying the property is lower.

A relatively small development will have fewer owners that the developers need to persuade to sell in a collective transaction. Therefore, it should take less time to get everything organised. That’s the reasoning.

However, it’s just as logical to think that with fewer owners there’s a good chance that some will disagree, making it harder to get the required 80% to consent.

One big reason why developers might prefer smaller developments is that the risk of not selling every unit within the required five years from the Strata Title Board’s date of award is lower.

If the developer does not sell every unit within that timeframe, he/she is required to pay an ABSD, which comes to 30% of what was paid for the land.

4. Location

The more your land is worth, the better the odds of your condo being sold en bloc. If your condo is in a prime location like District 9, 10, 11, or maybe 15, where the government is less likely to release land, your chances are higher.

Has the government earmarked your area for redevelopment? If so, this is a good indication that an en bloc sale may be in store for your condo. For example, aging developments near the Greater Southern Waterfront – the area spanning 30km of coastline from Gardens by the Bay East all the way to Pasir Panjang – are scheduled for redevelopment. This will free up more land along this prime area.

If properties in this area are available at prices developers find reasonable, given all the factors under consideration, they are likely to start approaching residents about selling.

Aside from the factors above regarding location, there are additional sites located in the Core Central Region being readied for a collective sale right now. There are also some collective sale sites available right now in the Outside Central Region, but not that many. 

5. Few Other Condos in the Area

With fewer or no other condos in the area, it means less competition for developers, making your development a more attractive purchase.

6. Age of Residents

The average age of the residents living in your development could be a factor for developers who may be considering your building for an en bloc sale.

A development with mostly older residents is likely to have more success in attracting an en bloc sale as developers see this population as easier to persuade.

7. It’s Been up for an En Bloc Sale Before

Some en bloc sales do not succeed. Mandarin Gardens is a perfect example, a 99-year development sitting on a one million sq. foot plot of land off East Coast Park. The asking price was a record $2.93 billion, which failed when trying to go en bloc.

Even if it failed the first time, once it’s happened, it could happen again. This is especially true now that you know that developers are interested and if the residents change, that increases the chances.

However, it’s important to understand that should the development fail to go en bloc several times, it may have “selling fatigue” and the residents may just want to stay.

12 Condos with the Most En Bloc Potential

1. International Plaza

This is one of Singapore’s largest and most impressive developments, having been built in the 1970s. It is made up of 209 residential units, 559 office spaces, and 192 strata shops. It also has a 36th floor swimming pool and a carpark. The building is located where Anson Road meets Choon Guan Street, the last corner plot along the frontage road entering the Tanjong Pagar precinct.

The property is located in a commercial zone with a height limit of up to 250 metres. The building sits on about 6,976 sq. metres (75,089 sq. feet) of land with 48 years remaining on the lease. Since the property is in a commercial zone the developer is not required to pay ABSD and foreign buyers are allowed to keep the land. 

Furthermore, International Plaza may qualify for the Central Business District Incentive Scheme. This allows developers to increase the building’s gross floor area by 25% to 30% depending on how they plan on using the land. Developers of aging office buildings in the CBD can use this scheme in converting to a residential mixed development. That way they can reap the benefits of a booming housing market. 

Given its size, International Plaza should attract large development companies and joint ventures. The most expensive collective sale up to the present time was the Farrer Court deal that sold for $1.34 billion in 2007.

2. Braddell View

In the past, Braddell View was a Housing and Urban Development (HUDC) estate, but in 2017 it was privatised. It was originally put up for collective sale on March 27 in 2019 for a hefty $2.08 billion. However, when the tender ended two months later in May, it had no offers. On August 13th it was relaunched at the same price, but again it received no offers.

Braddell View has a lot of features that appeal to developers, including occupying a massive 1.1 million sq. feet. It’s also located near two MRT stations, Braddell and Caldecott as well as several schools, coffee shops and a wet market.

If the collective sale succeeds, each condo owner could receive anywhere from $2.04 million to $4.03 million. Shop owners could receive anywhere from $529,500 to $1.2 million.

The problem is finding a large developer who is willing and able to pay in excess of $2 billion, which is an enormous quantum.

3. Emerald Park

Photo Source: PropertyGuru.com.sg

Emerald Park is a residential condominium located on Indus Road, within walking distance of the Tiong Bahru MRT station.

There should be quite a few developers interested in Emerald Park due to being in a prime location near central Singapore’s business district and Orchard Road. It has been rumoured for quite some time that Emerald Park will be put up for en bloc.

4. Hillcrest Arcadia

Hillcrest Arcadia can be found in Bukit Timah on Arcadia Road, which is a heritage road. A decade ago, residents tried getting a top-up of the remaining 66 years left on the lease, so it would be back up to 99 years. Unfortunately, the Singapore Land Authority (SLA) denied their application.

Much like Emerald Park, what makes Hillcrest Arcadia appealing to developers is its closeness to Singapore’s central district. Residents enjoy good schools for their children, shopping malls, and a variety of restaurants and casual eateries.

5. Peace Mansions & Peace Centre

Peace Mansions and Peace Centre have previously been up for an en bloc sale, a number of times. Peace Mansions and Peace Centre together occupy a large area of 76,617 sq. feet. This is a mixed development in a prime location at 1 Sophia Road, adjacent to the Civic District. There are four MRT stations within 600 metres of the development: North-East Line, North-South Line, Circle Line, and Downtown Line.

This development has previously been up for an en bloc sale, several times. These attempts were unsuccessful because they failed to get enough residents to approve the collective sale. However, a collective sale could succeed in the coming years.

6. Balmoral Point

Balmoral Point is an aging freehold apartment development built in 1974. Properties in the area of Balmoral Road have been in demand for en bloc sales for quite some time. Balmoral Point is right next to Ventuno Balmoral, previously 21 Balmoral Road. In 2005 Chip Eng Seng purchased the site for $19.5 million. There have been other well-known collective sales in the area: One Balmoral, Balmoral Condominium, and Balmoral View, which became One Balmoral, Goodwood Grand condominiums, and Sui Generis respectively. 

There are very few sales transactions occurring at Balmoral Point since it only has 31 units. November 2017 is when the most recent transaction occurred in which a 2,530 sqft unit sold for $3.75 million ($1,482 psf.).

7. Dalvey Court

Dalvey Court can be found off Bukit Timah Road, between the Stevens MRT station and Botanic Gardens. This 32-unit freehold development was built in 1976, so it’s another aging building. The latest Dalvey Court transaction occurred in June 2021 when a 2,186 sq. foot unit sold for $3.39 million ($1,551 psf.).

Villa D’Este is located in the same area as Dalvey Court, and in May 2018 it was en bloc-ed.

Dalvey Court adjoins the Dalvey Estate Good Class Bungalow (GCB) area, whereas Villa D’Este is located in the White House Park GCB area.

8. East Grove

East Grove is a freehold apartment building with 36 units that was built in 1975 on East Coast Road. Properties on this road have routinely been in demand for en bloc sales. In the same area, St. Patrick’s Gardens and St. Patrick’s were both purchased via collective sales. They were then redeveloped into Seventy Saint Patrick’s and St. Patrick’s Residences respectively.

The most recent sales in East Grove occurred in December 2020 when a couple of 1,044 sq. foot condos were sold for $1.25 million, or $1,197 psf., each.

9. Grange Heights

Grange Heights is a 120-unit freehold development built in 1975 off River Valley Road, a short walk from the future Great World MRT station. Four units in Grange Heights were sold in 2021: a 1,905 sq. foot condo sold for $3.538 million ($1,857 psf.), a 1,905 sq. foot condo sold for $3.4 million ($1,785 psf.), a 1,883 sq. foot condo sold for $3.258 million (1,730 psf.), and a 2,712 sq. foot condo sold for $5.05 million ($1,862 psf.).      

Not far from Grange Heights sits Horizon Towers. In 2007 when en bloc sales were at fever-pitch, Horizon Towers was nearly sold to a consortium for $500 million (just under $850 psf. ppr.) This group was headed up by Hotel Properties. But there were some minority owners who were against selling and they sued. They battled it out in court for more than 3½ years and in 2009 the Court of Appeal in the end overturned the sale.

10. High Point

High Point is a freehold development conveniently located within a short walk of the Orchard Road shopping belt located next to the Goodwood Park Hotel. This 59-unit building was built in 1974, and at this age it could certainly use a makeover. In fact, three of its neighbours were en-bloced in 2018: Cairnhill Heights, 67 Cairnhill Road, and Cairnhill Mansions.

11. Still Mansions

Still Mansions is a freehold development built in 1967 and located at the corner of Still Road and East Coast Road. This prime location is basically equidistant from two planned MRT stations, Marine Terrace and Marine Parade. This 30-unit building sits on a 24,951 sqft site located in the Telok Kurau area, an exclusive private residential neighbourhood.

Three condos in this building changed hands in 2021: in April a 1,098-sqft unit was sold for $1.2 million ($1,149 psf.), in May a 1,141-sqft unit was sold for $1.2 million ($1,052 psf.), and in September a 1,098 sqft-unit was sold for $1.1 million ($1,002 psf.).

12. Tan Tong Meng Tower

Tan Tong Meng Tower was built on Thomson Road not far from Balestier Road as a freehold project in 1977. It was first put up for collective sale in 2007, but unsuccessful. There are 35 units in this building, two of which were sold in 2021: a 3,240-sqft unit sold for $3.7 million (S$1,142 psf) and another 3,240-sqft unit sold for $3.45 million (S$1,065 psf).

Not far from Tan Tong Meng Tower you will find Skysuites 17, which was built on the same site where Diamond Tower previously stood. This building changed hands in a collective sale in 2010, and it was a $49.6 million ($582 psf. ppr.) transaction. Also, a mixed-use project known formerly as Ruby Plaza and located nearby in Balestier, was sold in 2007 for $69 million ($582 psf. ppr.) and redeveloped in what we now call The Mezzo. This development has 127 residential condos along with some office space.

Also at Balestier Point, a freehold mixed-use development, owners reportedly appointed a collective sale committee in October 2015 and a marketing agent in January 2016.

Disclaimer: The information provided in this article does not constitute legal advice. We recommend that you get the specific legal advice you need from an experienced attorney prior to taking any legal action. While we try our best to make sure that the information provided on our website is accurate, you take a risk by relying on it.

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